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2008 Membership Directory Issue 1 • 2008

Economic, AbundAnt/SEcurE And EnvironmEntAlly Sound

A Coal Powered North America

In this issue... FutureGen Update Fuel Flexibility Climate Change


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Published for: American Coal Council 1101 Pennsylvania Ave. N.W., Suite 600 Washington, DC 20004 Tel: 202-756-4540 Fax:202-756-7323 Fax: 732-231-6581 www.americancoalcouncil.org ACC Editorial Review Board Janet Gellici, American Coal Council Jason Hayes, American Coal Council Rick James, We Energies Andy Marti, Martin Engineering Beth Sutton, Peabody Energy Published by: Lester Publications, LLC 2131 NW 40th Terrace – Suite A Gainesville, FL 32605 Main line: (352) 338-2700 Toll Free: (877) 387-2700 President Jeff Lester  |  (866) 953-2189 Publishing Director Sean Davis  |  (888) 953-2190 Managing Editor Bonnie Winter Fedak  |  (866) 953-2181 Graphic Designer John Lyttle  |  (204) 953-2180 Account Executives Quinn Bogusky, Jeanine English, Shannon Evans, Mike Mechaney, Louise Peterson, Toban Vexzon © 2008 American Coal Council. All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the ACC. Disclaimer The opinions expressed by the authors of the editorial articles contained in American Coal magazine are those of the respective authors and do not necessarily represent the opinion of the American Coal Council or its member companies

Economic, Abundant/Secure and Environmentally Sound

Contents Message from ACC President��������������������������������������������������������������������������3 Message from ACC CEO��������������������������������������������������������������������������������5 Message from ACC Communications Director ����������������������������������������������7 ACC Events����������������������������������������������������������������������������������������������������9 ACC Vision and Mission Statement��������������������������������������������������������������10 2008 Board of Directors��������������������������������������������������������������������������������10 ACC Member Companies����������������������������������������������������������������������������11 ACC Champion & Patron Sponsors��������������������������������������������������������������11 FutureGen Update: Progress Toward Near Zero-emissions Unique Program Researches Technology to Reduce Emissions. . . . . . . . . . . . 13 Blueprint for a 2009 National Energy Policy. . . . . . . . . . . . . . . . . . 15 Should We Be Concerned? Coal Plant Cancellations: Will we figure it out in time?. . . . . . . . . . . . . . . . . 19 Generation & Transportation Fuels Why is Fuel Flexibility Like a Shock Absorber? . . . . . . . . . . . . . . . . . . . . . . . 23 Dominion Energy’s Virginia City Hybrid Energy Center: Using CFB to meet energy and environmental needs. . . . . . . . . . . . . . . . . 27 Coal Liquids in America’s Energy Future. . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Reducing Greenhouse Gas Emissions Through Coal Ash Utilization: New task team preparing industry for a cap and trade future. . . . . . . . . . . 33 Regulatory Firestorm Looms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Book Reviews Re-examining “Consensus” and the Drivers of Climate Change. . . . . . . . . . . 41 Future Energy: How the New Oil Industry Will Change People, Politics, and Portfolios. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 ACC Excellence Awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Supplying Coal to the Market The Path to Improved Mine Safety. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Energy Demand vs. Environmental Responsibility: The promise of cleaner coal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Index to Advertisers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Membership Directory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Insert On the cover: The cover of this issue of American Coal illustrates the connection between North America’s energy needs and the coal industry. Photographer John Mueller took the original photo of the train.

Printed in Canada Please recycle where facilities exist.

2008 Membership Directory )SSUE s 

ECONOMIC, ABUNDANT/SECURE AND ENVIRONMENTALLY SOUND

A Coal Powered North America

american coal council

In this issue... FutureGen Update Fuel Flexibility Climate Change

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A Message from the ACC President

We’re Focused On You – The Member Tom Vorholt, ACC President & Vice President Dry Cargo Sales, Ingram Barge Company

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f there is one thing that helps us to maintain our focus and to confirm where we need to be directing our energy, it is taking the time to ask, “What are the needs of our member companies?” Where industry is focused on providing a necessary product and addressing shareholder concerns, our focus – as an association – is mainly on serving our members. To accomplish that goal, the ACC has sought out your thoughts and feelings on several issues and then, in response to your replies, made many changes or upgrades in our offerings over the past few years. One consistent theme in your replies was the need to stay on top of the rapidfire policy changes occurring on the energy and environmental fronts. In the past year we have, therefore, finalized our work on creating a “beltway” presence. We opened our office in the Washington D.C. area and are now better able to keep our fingers on the “pulse” of these policy changes. Another area of concern for our members is the challenges that utilities are facing as government enacts more and more stringent environmental regulations. With increasing pressure being placed on american coal council

government and industry to develop detailed carbon dioxide reduction legislation, our utility members are on the front of a major policy battle that will permanently impact our energy supply and the costs of energy across the country. It is critically important that our utility members have an information source that helps them to stay informed on new research and technologies, as well as changing regulations. They also need more and more opportunities to network with other utilities, their suppliers, and service providers. In response, we have expanded our focus on providing information and services to our utility members. We have tailored our conference programs – changing the structure, timing, and formats. We are now offering our Spring Coal Forum in March to help you avoid the clutter of other conference programs that have previously clogged your schedules. We have also created a Fuel Flexibility Conference that will help utilities to better understand their fuel choice options. We’re continuing with our Coal Market Strategies Conference, as well as our strategic alliance with the Coal Trading Association to co-host the Coal Trading Conference. In all of our conferences, we are also now offering utilities a “2-for-1” pricing structure. By doing this, we’re working to ensure that utilities have immediate access to the most up-to-date research and information, as well as abundant networking and information-sharing opportunities. But we’re not stopping there. We are also seeking out new research, reports, and information on policy, environmental regulations, environmental science, and industry operations. We then make sure that we have descriptions and links to that information on our Web site and in the Coalblog so our members and the public can stay up to date on industry information by going to one easy-to-use

Web location. For those members who are not interested in using our Web-based resources, we continue to expand on the information in our monthly and quarterly email newsletters and our magazine, American Coal. Lastly, as I noted in the initial sentences of this message, we’re staying focused on our membership as a whole. In a specific attempt to meet the member base and to try to understand your needs, ACC employees are traveling to your locations, sitting down with you, and asking you point-blank, “What do you need from us?” Our goal is to find out from you, face-to-face, what you need and how we can help you achieve your goals. When added to our normal methods of online membership surveys, conference evaluation forms, Web site comments, and other information gathering tools, we’re pushing the boundaries to ensure that we better understand where you are coming from. The overriding challenge that we face as an association is to ensure that our members’ needs – your needs – are being met. We’re making the changes and working to ensure that your membership dollar is coming back to you several times over in information and services. But all of these new programs, initiatives, and our member-focused outlook will not work if we don’t get your feedback. Please make sure to let us know how we can serve you better. While we go out of our way to contact you, we also encourage you to get in touch with us. Call us at our offices (202-756-4540); e-mail us at info@americancoalcouncil.org and Jason@clean-coal.info. You can also fill out our conference evaluations, respond to our surveys, or even get involved on our board of directors. The more we can get in touch with you, the more we can learn how to serve you better.  u 3


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A Message from the ACC CEO

Cause and Effect Janet Gellici, CAE, CEO, American Coal Council

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few months ago I read Walter Isaacson’s biography of Albert Einstein. I’d always been intrigued by Einstein’s capacity to make sense out of non-logical and non-linear systems; to connect seemingly random, chaotic dots. His efforts were instrumental in the formation of what we now know as chaos theory. By its very definition, chaos would seem to defy logic. The classic definition of chaos is “a state of utter confusion or disorder; a total lack of organization or order.” Modernday chaos theory focuses on the relationship between seemingly insignificant events in the universe that have the potential to trigger a chain reaction that will change the whole system. A well-known saying in connection with this issue is “a butterfly flapping its wings in one part of the world can cause a hurricane on the other side of the earth.” This is also known as the “butterfly effect.” So, why all this pondering about chaos? Well these days, I find myself wondering if even Einstein could make sense of the apparent chaos in today’s coal industry. I think he would certainly appreciate the manifestation of the butterfly effect in our global marketplace and public policy arenas. The explosive growth in emerging economies such as China and India is well documented. The resultant increase american coal council

in demand for more electricity and more transportation fuels is undisputed. Less clear is how recessionary factors here in the U.S. are likely to affect energy demand. A $3-per-gallon price for gasoline hasn’t seemed to squelch our use of SUVs. Will a $4-per-gallon price increase our use of mass transit systems? We may be pinching pennies by eating out less, but we’re staying home watching more programs on our flat screen TVs, recharging our cell phones and logging on to the Internet. Global thermal and met coal markets have been directly impacted by economics, as well as politics and weather conditions. On the thermal side: Harsh winter conditions and a booming economy in China have resulted in brownouts and a government halt of exports to conserve stockpiles. In response to low coal inventories and increasing demand, India’s Power Ministry has called on utilities to increase coal imports. Power outages in South Africa and price majeure initiatives in Venezuela have further disrupted traditional supply flows. In met markets: Steel prices are increasing in response to economic growth and coke makers’ inventories have reached critical levels, while global coke prices and met coal demand are surging. China has become a net importer of met coal and imposed a tax on met coal exports. Mine explosions in the Ukraine, rail problems in Russia and declines in Polish reserves have curtailed met supplies from these regions. Australia continues to struggle with flooding issues and rail and port capacity constraints. U.S. suppliers’ efforts to fill the gap in both global thermal and met coal demand is drawing Eastern coal into international markets with, as yet, untold implications for domestic utilities and electricity consumers. Future production in our nation is being pressured by increasingly stringent mine safety requirements, curtailed permitting of new mines and geological constraints. Bearing the brunt of much of this chaos, U.S. utility generators and industrial coal consumers are attempting to make sense of how to meet anticipated increased demand

in light of fluctuating supply factors, increasing prices for fuel, transportation and infrastructure development, and compliance with pending environmental requirements. The sheer number and complexity of the variables affecting fuel choice and development decisions is taxing the most sophisticated “what if” computer models. In the midst of all this apparent chaos, what is clear is that decisions we make today have profound and far-reaching – butterfly – effects. Beijing’s efforts to advance the well-being of its citizens through increased electrification, mobility (transportation) and infrastructure development, have significant global environmental implications and a direct impact on the cost of energy and consumer goods for citizens in Athens, Ga. Similarly, a judge’s decision to deny permitting of a coal mine in West Virginia, and a politician’s decision to curtail development of a new coal power plant in Kansas, will also impact citizens in Athens, Ga. Actions – even well intentioned – have consequences. Perhaps our intention is to curtail CO2 emissions in an effort to reduce global warming. Are we willing to curtail our nation’s economic prosperity to achieve that objective? Are we willing to increase our reliance on foreign energy sources to achieve that objective? Are we willing to decrease our use of electricity to achieve that objective? Are we willing to pay more for gasoline, consumer goods and air travel to achieve that objective? Are we willing to constrain our national prosperity while other nations advance theirs? Maybe we are; maybe we aren’t. Maybe there’s a balance that needs to be struck between our intentions and the reality of their effects. Yes, it’s chaotic. In our efforts to make sense of it all, it’s important to keep questioning, to consider the consequences of our actions, to strive toward an understanding of cause and effect, to achieve an acceptable balance. As Einstein said, “Life is like riding a bicycle. To keep your balance you must keep moving.”  u 5


The Pittsburg & Midway Coal Mining Co. is now Chevron Mining Inc. Same great company, new exciting possibilities.

More than one hundred and twenty years of operating excellence, now more than 1500 employees strong. A company committed to safety above all else - that was P&M Coal. And today, we are Chevron Mining Inc. Our name has changed, but our values remain the same: Protecting our people, our communities and our environment - that’s the Chevron Way. Founded in 1885, P&M Coal is one of the oldest continuously operating mining companies in the United States. Striving to be the mining company most admired for our People, Partnership and Performance, Chevron Mining Inc. is a proud member of the Chevron family of companies.

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Our Power is Our People.


A Message from the ACC Communications Director

Keep Your Pressure Up – We’re Making Diamonds in Here Jason Hayes, M.E.Des., Communications Director, American Coal Council

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his edition of American Coal initially presented a formidable challenge. Last year was a great year for our publications, and expectations are always for more and better. For the ACC, 2007 was also a banner year; we had established our presence in D.C. and were celebrating our 25th anniversary. That enthusiasm bled over to the magazines and both issues represented a high water mark for advertiser and editorial interest. Last year also gave us the opportunity to move the magazine toward a more reader-oriented style and a more personal feel – yes those were our children on the cover of the spring issue. With an updated Web site and newsletter format, we have begun to see some fruit from our work toward becoming the “go to” information source for the coal industry. With that as a basis, coming up with something new and interesting for the magazine meant I had my work cut out for me. I needed to find a way to keep things moving forward. Things were similar in our industry. Coming into 2007, we were experiencing a more buoyant and upbeat attitude; we were looking forward to the many coal-fueled plants that had been proposed. Additionally, forecasts for rapid increases in demand had all of our industry sectors trying to figure out how they would help to supply the coal that would be needed. Topping things off, there was also a healthy and growing commitment to investment in research by industry, academia, and government. american coal council

It’s not unusual to experience a lull after having an “up” year, so I wasn’t surprised to see that when we started production of this first edition of 2008, things appeared a little less organized. We had changed the dates of our Spring Coal Forum from May to March. That change prompted a three-month rush on our Excellence Awards program dates and then pushed the normal release dates for this magazine around by about two months. Additionally, several of the authors I contacted for this edition were just too busy to provide editorial for the magazine. Some were even forced to pull out after having committed to preparing articles. The combination of changing dates and deadlines, along with difficulties keeping pages stocked with editorial, proved challenging. The ACC was not alone in this lull, however. The industry also had momentarily slowed its stride. While most industry experts and forecasters are still upbeat about coal’s future, there is no denying the fact that addressing last year’s safety issues, changing world-market conditions, and staring impending carbon dioxide reduction regulations in the face has changed the topic of water cooler discussions across the industry. Changing times have captured our attention. It is in these lulls, however, that those affected pull themselves up by their bootstraps and come up with new and better ways of achieving their goals and objectives. At the ACC, we worked through evolving member needs and changing timelines to host a very successful Spring Coal Forum in Miami this March. We were also pleased and proud to present five Excellence Awards to a very deserving group of organizations. On the magazine front, we were fortunate to have another group of industry experts that were willing to offer their research and opinion for this edition. As the articles in this edition show, utilities and producers are addressing economic and environmental concerns by tightening belts and looking for ways to improve the efficiency and overall performance of our mines and generation fleet. As has always been an industry habit, we are moving ahead of expected regulations to propose more efficient and clean generation and transportation fuel options. Industry experts are discovering ways to maximize fuel flexibility while still keeping power affordable for utility customers. Moving past the tragic accidents

suffered last year, the industry and government worked cooperatively to implement new regulations that are, right now, improving miner safety and bettering industry responses to accidents. Additionally, despite massive setbacks, industry alliances are pushing forward, looking for ways to make carbon dioxide sequestration a reality. The short version of that story is that although we’re facing challenges, the coal industry is proactively addressing safety, environmental, and social challenges. The assembled articles in this magazine are proof of that reality. I noted before that a lull isn’t surprising after a banner year. Unfortunately, it’s also to be expected that some will take great pleasure in seeing you go through a valley and will use your down time as an excuse to gloat. Many in the media and special interest groups have used broad market downturns, changing political realities, and coal plant permit denials as fodder for their anti-coal attacks and calls for stringent regulations on coal-fueled energy. What coal’s detractors have missed, however, is that coal powers half of our growing demand for energy and all of their protestations are not going to change that fact. In fact, as the ACC and others continue to provide up-to-date, accurate, and balanced information on how coal is our most abundant, affordable/secure domestic energy resource, and as our industry continues to provide energy in an increasingly clean and efficient manner, the anti’s will be forced to admit their plans to abandon coal are unrealistic and overly expensive. In my movement around the Internet, I have often seen the ad for a humorous poster that shows a diamond set against a background of coal. The text under the picture reads, “Pressure: It can turn a lump of coal into a flawless diamond or an average person into a basket case.” Far from becoming the latter, the people throughout the coal industry are once again addressing numerous challenges and showing their diamond-like character. Claiming the “flawless” aspect for some of us might be a hard sell, but as I have told many people in discussions about coal and the coal industry, they can keep the pressure up; we’re not all that concerned. In the long run, they’re only making us more effective. In the long run, they’re actually turning us coal-types into diamonds.  u 7


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DO YOU KNOW WHAT’S AROUND THE CORNER?

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Membership benefits include educational programming and technical seminars, advocacy support, broad-based networking, Web site,

Membership Coupon Join the 170 companies that recognize the importance of belonging to an Association that serves as the pre-eminent business voice of the American coal industry and advocates for coal as an economic, abundant/secure and environmentally sound fuel source. The American Coal Council (ACC) is an alliance of coal, utility, trading, transportation, terminal and coal support service companies, advocating a non-adversial, partnering approach to business. The ACC facilitates the lawful exchange of ideas and information regarding the American coal industry. It serves as a essential resource for companies that mine, sell, trade, transport or consume American coal. The ACC also serves as a resource for those wishing to expand or enhance business relationships in North American and international coal markets.

electronic and printed membership directory inclusion, newsletter and members-only electronic updates, database resources, policy input, referrals and discounts on events and industry publications.

Yes

,

please send me membership information!

Name ________________________________________________________ Title __________________________________________________________ Company _____________________________________________________ Address ______________________________________________________ City _______________________State _____________ Zip _____________ Phone ______________________ Fax ______________________________ E-mail ________________________________________________________ Mail or FAX to: American Coal Council 1101 Pennsylvania Ave. N.W., Suite 600 • Washington, D.C. 20004 • 732-231-6581 ~ Fax

2008 event Dates spring Coal Forum March 10-12, 2008 – Miami, FL Fuel Flexibility Conference July 29-30, 2008 – Baltimore, MD Coal Market strategies October 6-8, 2008 – Williamsburg, VA Coal trading Conference December 10-11, 2008 – New York, NY

american coal council

For additional information visit www.clean-coal.info or call 202-756-4540

9


American Coal Council

American Coal Council 2008 Board of Directors Vision Statement The American Coal Council (ACC) strives to serve as the pre-eminent business voice of the American coal industry.

Mission Statement The American Coal Council (ACC) is dedicated to advancing the development and utilization of coal as an economic, abundant/secure and environmentally sound fuel source. The Association promotes the lawful exchange of ideas and information regarding the coal industry. It serves as an essential

coal Suppliers Bill Davison Vice President Sales & Marketing Foundation Energy (2007-2009) VP Coal Suppliers & Membership Chair Matt Levar General Manager Sales & Marketing Rio Tinto Energy America (2007-2008) Tim Whelan Vice President Sales Alliance Coal LLC (2008-2010) coal consumers Bud Walker Regional Vice President, Fuels Midwest Generation (2006-2008) VP Coal Consumers Dan Lidisky Manager Coal Supply & Business Development AmerenEnergy (2008-2009) Jeff Wallace Vice President Fuel Services Southern Company (2008 - 2010) energy Traders Steve Miller President COALTRADE, LLC (2007-2009) President-Elect 2009, Treasurer, Chair HR & Compensation

Transportation Bob Brautovich AVP Coal Marketing-West BNSF Railway (2007-2009) Danny Smith Senior VP Energy & Properties Norfolk Southern Corporation (2006-2008) VP Transportation Jim Garrett Plant Manager AEP MEMCO LLC (2008-2010) coal Support Services Mike Durham Ph.D., President ADA-ES, Inc. (2006-2008) VP Coal Support Services Scott Hutter President & CEO Martin Engineering (2008-2010) immediate Past President Keith Drohan Senior Market Originator Dominion Energy (2007-2009) At large Tom Vorholt Vice President Dry Cargo Sales Ingram Barge Company (2007-2009) ACC President 2008

Dan Vaughn Director Coal Services United Power/ICAP (2007-2008)

resource for companies that mine, sell, trade, transport, or consume coal. The ACC provides educational programs, advocacy support, peer-to-peer

networking

forums and market intelligence that allow members to advance their marketing and

thank You editorial Review Board • • • • •

Janet Gellici, American Coal Council Jason Hayes, American Coal Council Rick James, We Energies Andy Marti, Martin Engineering Beth Sutton, Peabody Energy

management capabilities. 10

american coal council


American Coal Council Member Companies

thank You ACC Champion & Patron sponsors 2008! Champion Sponsors

ADA Environmental Solutions, Inc.

Gainesville Regional Utilities

Platts

AEP MEMCO LLP

GE Rail Services

PNC Bank N.A.

AEP Memco LLP

Glencore Ltd.

Portland General Electrric

Alliance Coal, LLC

Global Energy Decisions

Powerspan

Alliant Energy

Golder Associates Inc.

PPL Energy Plus

Alpha Natural Resources LLC

Grain Processing Corporation

Pratt & Whitney

ALSTOM Power, Performance Projects

Great River Energy

PricewaterhouseCoopers LLP

Ameren Energy Fuels & Services Co.

Hazen Research, Inc.

Progress Energy

American Coal Ash Association

Headwaters Incorporated

Progress Fuels Corporation

American Commercial Lines LLC

Hellerworx, Inc.

Public Service Company of New Mexico

American Electric Power

Helm Financial Corporation

Railroad Financial Corporation

Arch Coal, Inc.

Hill & Associates, A Wood Mackenzie Company

Rentech

Argus Media, Inc. Arizona Public Service Basin Electric Power Cooperative Benetech, Inc. BHP Billiton Black & Veatch BNSF Railway Co. Boral Material Technologies Cargill, Inc. Carpenter Creek, LLC Center for Energy & Economic Development (CEED) Central Coal Company Chevron Mining Inc. Coal Marketing Company (USA), Inc. Coal Utilization Research Council CoalTek, Inc. Commonwealth Coal Services, Inc. Compass Coal Services, LLC CONSOL Energy, Inc. Constellation Energy Crounse Corporation CSX Transportation Dakota, Minnesota & Eastern Railroad Corp.

Holcim (US) Inc./St. Lawrence Cement Co. ICAP United, Inc. ICF Consulting Indianapolis Power & Light Company Ingram Barge Company Interlake Steamship Company Intermountain Power Agency James River Coal Company James River Coal Sales, Inc. John T. Boyd Company Kansas City Southern Railway KCBX Terminals Company Kiewit Mining Group, Inc. Kinder Morgan Bulk Terminals, Inc. Koch Carbon LLC Lakeland Electric Louis Dreyfus Highbridge Energy Lower Colorado River Authority Luminant Energy Marston & Marston, Inc. Martin Engineering McGuireWoods LLP MidAmerican Energy Company

Resource Technologies Corporation Rio Tinto Energy America Roberts & Schaefer Company Salt River Project Sampling Associates International Savage Services SCANA Corp. SCH Terminal Co., Inc. Sempra Energy Trading Separation Technologies LLC

SSM Coal Americas, LLC Standard Laboratories, Inc. Storm Technologies, Inc. Taggart Global, LLC. TECO Coal Corp. The Coal Association of Canada The McCloskey Group Thunder Bay Terminals Ltd. TrinityRail Troutman Sanders LLP TTI Railroad, Inc. Tucson Electric Power Company

Dominion Energy

Mineral Resource Technologies, A CEMEX Co.

Union Pacific Railroad Company United Maritime Group

Minnesota Power

University of Kentucky - Center for Applied Energy Res.

Dynegy Coal Trading & Transportation LLC

Montana Rail Link, Inc. Murray Energy Corporation

University of North Dakota, Energy & Environmental Research Center URS Corporation

E.ON U.S. LLC

Natural Resource Partners L.P.

East Side River Transportation

Newmont Mining Corporation

Emery Energy

NexGen Coal Services Ltd.

Entergy

Norfolk Southern Corporation

Ernst & Young

Norwest Corporation

Evergreen Energy, Inc.

NRG Energy, Inc.

Evolution Markets LLC

Omaha Public Power District

Fervim Ingenieria SA DE CV

Orlando Utilities Commission (OUC)

Fine Coal Inc.

Pace Global Energy Services

WV University, Nat’l. Research Center for Coal & Energy

FirstEnergy Generation Corp.

PacifiCorp

Xcel Energy

Foundation Energy Sales, Inc.

Peabody Energy

Xcoal Energy & Resources

FreightCar America

Pincock, Allen & Holt

Fuel Tech, Inc.

Platte River Power Authority

american coal council

Michael Durham, Ph.D. President 8100 SouthPark Way, Unit B Littleton, CO 80120 www.adaes.com Phone: (303) 734-1727

The C. Reiss Coal Company

Midwest Generation EME, LLC

Mitsui Rail Capital, LLC

Patron Sponsors

Southern Company

Dayton Power & Light Company

DTE Rail Services

Marc Rademacher Vice President Business Development West 4665 Paris St., B-200 Denver, CO 80239-3117 www.us.sgs.com/minerals Phone: (303) 373-4772

SGS Minerals Services

Midwest Energy Resources

DTE Coal Services

Katrina Sumey 3333 Walnut St. Boulder, CO 80301 www.platts.com Phone: 720-548-5665

Rhino Energy

David J. Joseph Company

Drummond Company, Inc.

James Turner Vice President Sales & Marketing One Martin Place Neponset , IL 61345 www.martin-eng.com Phone: (309) 594-2384 x. 295

Christopher Blazek Vice President Marketing 1851 Albright Rd. Montgomery, IL 60538 www.benetechusa.com Phone: (630) 844-1300 x214

Stevan Bobb Group Vice President-Coal Marketing PO Box 961051 Ft. Worth, TX 76161-0051 www.bnsf.com Phone: (817) 867-6253

Usibelli Coal Mine, Inc. We Energies Westar Energy Western Region Ash Group (WRAG) Western Research Institute Westmoreland Coal Sales Co.

Ken Frailey President 10653 S. Riverfront Parkway, Ste. 300 South Jordan, UT 84095 www.headwaters.com Phone: 801-984-9400

WPS Resource Corporation

Andrew Cox 3120 Wall Street, Suite 310 Lexington, KY 40513 www.rhinoenergyllc.com Phone: (859) 519-3610

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Unique Program

Researches technology to Reduce emissions By Michael J. Mudd, futuregen Alliance

T

hroughout history, every generation has faced unique challenges. From reaching the moon to rebuilding societies and economies from the devastation of world war, to raising the lifestyles of all people on earth by providing affordable energy. One of this generation’s greatest challenges is clear: The need for electricity is growing each year and we must address society’s expectation for reduced carbon dioxide (CO2) emissions while providing citizens with affordable, secure and clean energy. Indeed, many leaders in the United States government and industry recognize that advancements in technology, similar to what industry and governments have achieved over the past century, must continue to address the energy needs of society. Researchers and industry have made great progress in advancing technologies to support coal-fueled electricity generation and lower carbon emissions; yet, while these technologies exist today, they have yet to be integrated and tested in a commercial-scale power plant, which is essential in proving technical and economic viability. FutureGen is the first such major facility that will combine and test these technologies at a single plant. FutureGen, the flagship U.S. program to advance power production technology american coal council

and reduce CO2 emissions, integrates coal gasification to generate electricity and carbon capture and sequestration (CCS) technology to eliminate virtually all of the emissions associated with generating electricity using one of the world’s most abundant and secure fuel sources – coal. No other project like FutureGen is underway in the United States or around the world. In 2003, the Department of Energy (DOE) approached the coal mining and utility industry to work cooperatively to push technology, design, build and operate a first-of-its-kind, near-zero

emissions coal-fueled power plant. The federal government sought a publicprivate partnership for obvious reasons. First, building a first-of-its-kind facility carries risk and should not be born by any one set of shareholders or electricity ratepayers. Second, once built, the lessons learned from the ongoing testing of technology at the plant would be shared with the world to replicate it around the globe to reduce costs.

Industry rose to the challenge and created a global alliance to partner with the DOE. When announcing the formation of the public-private partnership, then Energy Secretary Spencer Abraham said, “FutureGen will be one of the boldest steps our nation has taken toward a pollution-free energy future. Knowledge from FutureGen will help turn coal from an environmentally challenging energy resource into an environmentally benign one. The prototype power plant will serve as the test bed for demonstrating the best technologies the world has to offer (Department of Energy Release, Feb. 27, 2003).” Many of the largest coal producers and users in the world quickly signed on to take part in funding and planning the FutureGen project. Over the next four years, 13 companies and four countries pledged support for the FutureGen project. The publicprivate partnership ensured that all of these entities assumed funding and risk for the project and would also be provided with the technology after completion. Twelve candidate sites applied to be considered and after a first round of investigation, four finalist sites were selected. In March 2007, DOE signed on to its next phase of a legally binding cooperative agreement with the FutureGen Alliance to carry out the project, while the Alliance was con13


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ducting a rigorous environmental review of the candidate sites. DOE issued the Final Environmental Impact Statement in November 2007, which found all four sites were acceptable for the facility. After its thorough review in December 2007, the Alliance selected Mattoon, Ill., as the final site for the facility. Weeks after the Alliance announced the selection of Mattoon as the winning site, the DOE said that the program may need to be restructured because of cost concerns and refused to release the Record of Decision, the final step in completing the National Environmental Policy Act (NEPA) environmental permitting process. This was a surprise to the Alliance, since the DOE fully reviewed the $1.8 billion cost estimate before it signed the cooperative agreement. Furthermore, in the final environment impact statement that DOE released in November 2007, it said all four sites were acceptable from an environmental perspective. Managing costs is not an issue unique to the FutureGen project, and the project’s scope and cost in constant dollars as currently configured, is consistent with the original scope that DOE laid out prior to the formation of the Alliance. However, every major infrastructure project in the world is experiencing inflationary costs due to rising materials and labor costs. To help share this cost burden, the Alliance proposed absorbing a larger portion of the inflation costs, however, DOE did not respond to the Alliance’s proposal. In January 2008, the administration suddenly pulled support for the project, citing cost “overruns” and it issued a Request for Information on its restructuring proposal to break up FutureGen into several smaller CCS-only projects. The department’s pro14

posal to restructure FutureGen is vaguely defined and falls short in several ways. The DOE proposal delays technology development and integrated demonstration of commercial scale CCS by five years or more. FutureGen is further along than any other proposed CCS plant and can be operational by 2012. The Alliance has delivered five years of progress, including contract negotiations, an enthusiastic and committed local community, a site that is technologically and legally ready to go, a design and cost estimate, a final environmental impact statement, vendor relationships, and a team of 50 engineers and scientists. No other near-zero emission power-plant project in the world can compete with FutureGen in terms of this timeline. The DOE’s plan also reduces – if not eliminates – sharing of important technology and international participation because it relies on a commercial for-profit structure for the projects. Companies participating in DOE’s restructured program would likely hold the technology for themselves. On the other hand, one of the hallmarks of the Alliance is, as a nonprofit organization, it will broadly share lessons learned through research and operation of the facility, facilitating the deployment of commercial, near-zero emission power plants throughout the world. This is especially important for developing countries such as China and India. The DOE’s new plan provides no such public benefit. There are other complex issues that make the DOE’s proposal deficient, such as not addressing liability protection for injecting CO2 into the ground, tax issues, and the expectation that commercial projects will not be able to achieve removal of 90 percent of total CO2 generated by the facility.

One of the greatest challenges presented by DOE is its destruction of public trust. By restructuring FutureGen, DOE has demonstrated that it is willing to walk away from public-private partnerships, thereby jeopardizing the viability of the commercial power plant upon which DOE proposes to add CCS. Despite DOE’s actions, the Alliance remains committed to the original project and has engaged several Members of Congress to craft a legislative solution to keep FutureGen at Mattoon on track. Key decisionmakers understand that the federal government and private companies will need to invest in excess of $10 billion over the coming decade to develop, prove and deploy CCS technologies in the marketplace. The price tag of FutureGen at Mattoon is necessary in order to provide a working model of CCS technology that other companies and countries can use to develop subsequent plants. The FutureGen Alliance has already pledged approximately $400 million under its current cooperative agreement with DOE. This level of financial contribution by industry to a DOE program and without any opportunity for direct financial return on its donation, is unprecedented. Given the urgency of developing and deploying technology to reduce carbon emissions from power plants, we are optimistic that Congress will continue to support FutureGen. There is no project in the world that can produce a nearzero emission power-plant faster than FutureGen at Mattoon. FutureGen is a non-profit entity, includes unprecedented international involvement and information sharing, and has a site that is technically and legally ready to go. Alternatives will cost the country five years or more of delay and will deliver less in terms of results. FutureGen at Mattoon must be maintained as a global flagship project for advancing near-zero emission coal technology; other projects should be a complement to – not a replacement for – FutureGen. FutureGen is an international response to one of the world’s greatest challenges. It is up to Congress and the current administration to recognize the importance of CCS technology and the FutureGen project, and to provide the global community with a solution to climate change.  u Michael J. Mudd is CEO of the FutureGen Alliance (www.futuregenalliance.org/). american coal council


Blueprint for a 2009 national energy Policy The Institute for 21st Century Energy, an affiliate of the U.S. Chamber of Commerce

This article is an adaptation of Frederick C. Smith’s remarks to the ACC’s 2008 Spring Coal Forum in Miami. Mr. Smith is the vice president at The Institute for 21st Century Energy – an affiliate of the U.S. Chamber of Commerce (www.energyxxi.org).

e

nergy is a huge enterprise. It is, by itself, an estimated $6-trillion global commodity business, requiring massive amounts of capital; large, complex, interdependent infrastructure systems; highly trained work forces; and continuously evolving technology. Few understand the scale of the energy enterprise, the challenges confronting it, and the difficulty of transforming it. Like a heavily laden supertanker or a 100-car coal train, this enterprise operates with tremendous inertia – its path cannot quickly be changed. Even if we enjoyed the perfect confluence of the right market signals, adequate capital, favorable public opinion, determined political will, and emerging technologies, it would take years – perhaps decades – to substantially modify the global energy enterprise. Society currently possesses few of the elements needed to drive this change. Rather american coal council

than working together to find sensible solutions to our pressing energy problems, we remain mired in a clash of policy issues and priorities. For example, we demand more energy, but allow less energy exploration and production. Likewise, we embrace the promise of energy efficiency and conservation, but we aspire to buy larger homes and more powerful automobiles. Furthermore, we take electricity for granted and, despite the need for more energy, we oppose the construction of new power plants and transmission lines. We are betting on the development of a host of emerging energy technologies, but we fail to adequately fund the research and development necessary to bring them about. While the picture for the energy enterprise appears daunting, the situation actually presents many opportunities. The technological advances needed to meet energy policy challenges offer opportunities for innovation; new forms of energy create new businesses and employment; and the international challenges will allow the United States – if it so chooses – to re-assert its global leadership position in solving critical energy and environmental problems.

To take advantage of these opportunities, however, the next president’s administration must promote a common sense and comprehensive energy plan that recognizes the fundamental necessity of having a reliable and diverse supply of energy for strong economic growth. Moreover, the plan must include measures to enhance energy security and protect the environment. To be successful, this plan must take into account the following major areas of consideration. First, the plan must clearly address the global demand for energy. As the global economy expands to accommodate rising human aspirations and the addition of 70 million people each year, global energy use could easily double by 2050 and triple by 2100, with the largest projected increase in the non-OECD (Organisation for Economic Co-operation and Development) countries, particularly China and India. Second, the plan must recognize the fact that current energy supplies are not expected to meet projected demands in the near future. That “delta” – or gap – can be reduced by technology, efficiency, greater production of existing sources, and finding new alternative 15


forms of energy. We will need to take advantage of all sources of energy, including the continued use of fossil fuels for the foreseeable future. There is no single solution to providing adequate supplies of energy – we must rely on all possible sources. Third, domestic energy problems require global solutions and, therefore, the plan must consider the international context of these issues. We cannot have a national energy policy that does not take into account the global economy and worldwide demand for energy. Fourth, an energy policy must take into account environmental concerns, including climate change. These concerns must also be addressed in a global context and in terms of maintaining economic growth, meeting national security needs, providing for the increased energy needs of a larger population, as well as improving the environment. Fifth, an energy policy must promote technology and innovation as the keys to finding more energy, using it efficiently, and lowering greenhouse gas emissions. An R&D portfolio of technologies must include affordable carbon capture and sequestration technologies; nuclear energy technology; technologies for solar, wind, biomass, and geothermal energy; as well as transportation fuel technologies (cellulosic biofuels, hydrogen, electricity, and other fossil fuel substitutes). Sixth, no plan will be complete if it does not address the country’s critical energy infrastructure. As the demand for energy grows and greater supplies are needed to meet that demand, we must ensure we have an adequate infrastructure to produce, transport, deliver, and store the needed energy. In the United States, the existing infrastructure, as extensive as it is, is decaying and not adequate to meet future demands. It takes years to plan and build infrastructure – and we’re not making the investment today to improve the situation for tomorrow.

Perhaps the most divisive topic in developing a national energy plan is climate change. Partisan politics and conflicting policy positions surround this issue. Fighting the scientific premise of this issue is essentially a losing proposition. The majority of the American people, scientists, and members of Congress – including the three remaining presidential candidates – believe climate change is real and that humans are to blame. Several recent scientific studies have concluded “the world must bring carbon emissions down to near zero to keep temperatures from rising further.� Zero – or near zero – emissions is impracticable. There will be a significant reduction, however. The Senate is poised to vote on legislation that would reduce U.S. emissions by 70 percent by 2050. Senators Clinton and Obama back an 80 percent cut, and John McCain supports a 60 percent reduction. Prior to voting on any such legislation, Congress needs to take into consideration the intended and unintended consequences of congressional action on energy supplies and the economy. A vigorous debate on emission-reducing proposals would afford everyone the opportunity to weigh the pros and cons of each measure and to make an educated and informed decision before the enactment of legislation that would affect the economy – as well as the environment – for decades to come. It’s also a reality that we must rely on the continued use of fossil fuels for the foreseeable future. The best example is coal, which is abundant in the United States and the source of energy that generates more than half of our electricity. The coal business, therefore, must ask itself, how it can best continue to prosper and grow in a carbon-constrained world. The coal industry is in the best position to chart a new course to keep coal a strong and growing part of our nation’s energy mix.

If the coal industry does nothing, the choice by default of utility executives likely will be natural gas-fired generation, along with more nuclear, some wind, and a little biomass. We need more natural gas, nuclear, wind, and biomass – but we also need coal if we’re expected to have a balanced, resilient power system. For coal to prosper, we must develop and deploy carbon capture and sequestration, at gigaton scale, in multiple geologic structures, in many regions of the country, at a reasonable price. That’s a huge order. It requires new technologies, new regulatory and liability regimes, new infrastructure, and a level of public understanding and confidence that we simply don’t possess today. A national energy policy must build on a positive program of efficiency, technology, and inclusive global action – if it is sensible, rational, and would constructively speed our transition to a low-emission, carbonconstrained economy, while securing our energy supply and maintaining economic competitiveness. That’s a handful of key objectives, but they’re all necessary components of a comprehensive energy policy package if we are to succeed. This effort to maintain economic growth, enhance energy security and protect the environment must begin with determined leadership by the White House and the Congress – but it cannot end there. This is a challenge that must be met through the efforts of the private sector, government at all levels, and civil society at large for decades to come. To succeed, we must disrupt old, comfortable orthodoxies and challenge deeply held values. Various interests will have to seek compromise with traditional adversaries. We will need to be patient, because there are no easy answers, no shortterm solutions, and no technological silver bullets. Yet, unless we manage these challenges, they will ultimately manage us.  u

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Coal Plant Cancellations: Will we figure it out in time? By Jason hayes, American Coal Council

At the big Sandton mall in northern Johannesburg, shoppers stroll in darkness. They have been caught in one of the many blackouts that have plagued South Africa for three weeks. Shops are closed, unable to open their tills or process credit cards. Ice-cream shops watch their merchandise dissolve; food stalls are unable to offer coffee or anything hot to eat. In Cape Town, a power cut trapped tourists in the cable car that goes up Table Mountain, and in Pretoria, angry commuters whose trains stopped running, set them on fire. – Economist Magazine 2-2-08, p. 75

o

ur society runs on cheap, affordable electricity. When it stops, much of our life grinds to a halt and this brief description of life in South Africa isn’t all that far removed from what life in North America could soon resemble. California residents are familiar with the potential for rolling black outs being imposed as an electrical system-saving measure. If the California Independent System Operator had not imposed them in 2005, increasing demand, driven by high temperatures and growing populations, could have caused widespread system instability and power failures. But that’s not news to 50 million people in the northeastern states and the Canadian province of Ontario who expeamerican coal council

rienced the largest power outage in North American history on Aug. 14, 2003. Transmission line troubles compounded by computer glitches worked together to cause a cascading failure in the system and pushed much of the eastern seaboard into the dark. Unfortunately, the lessons learned from those and other blackouts do not appear to be sinking in. A Feb. 3 Washington Post article noted that skyrocketing electricity prices have not slowed growing demand in the D.C. area. At the same time, environmental groups and legislators have worked to stop utilities from building new generation sources. Growing demand and limited supply must eventually collide and energy industry experts now predict that without immediate action on new generation and

transmission capacity, Virginia, Maryland, and the D.C. areas could face power shortages and rolling blackouts within the next four years. The basic laws of supply and demand are presented to most of us by the time we reach junior high; it’s not rocket science. Limit supply and grow demand and the two, eventually, will meet up. Regulators, however, are still listening to environmental groups and pressuring utilities to drop or postpone their plans for building coalfueled generation stations. Coal is our most abundant and affordable domestic energy resource. It currently provides half the country’s electricity needs, but the current fleet of coal-fueled plants can’t last forever. They will need to be replaced. Undoubtedly, regulators, 19


NGOs, and members of the public think they’re performing a public service when they suggest we remove coal from the list of replacement options. It’s questionable, however, as to whether they have seriously considered the long-term implications of their decision to limit our energy choices. Energy forecasts repeatedly tell us that the demand for energy in North America will continue to grow – rapidly – well into the future. The Energy Information Administration (EIA) predicts in its 2007 Annual Energy Outlook that demand for energy in the United States will increase by an average of 1.1 percent per year every year out to 2030.

they would inject a cost of carbon-dioxide emissions premium into any decisions they make on financing power projects. A February Wall Street Journal article belabored the obvious by reporting that “this will make them less likely to underwrite financing on conventional coal-fired power plants.” All of these factors are dulling utility and investor desire to propose new coal-fueled power. Many are treading water right now, holding off on new plants and promoting conservation programs among their customers. At best, this is a stopgap measure as demand for energy continues to grow. A lack of excitement on the part of some does not mean that nothing is being done

Again, there are bright points on which the industry can focus, but there is a lot of work to be done correcting perceptions and encouraging people to look beyond knee-jerk and unfounded rejections of coal. In the early 2000s, there was a recognition of that demand and utilities and government were working together to ensure sufficient generation capacity was being permitted so that demand would be met. With high gas prices, public concern over nuclear waste disposal, and the inability of renewables to meet growing baseload demands, much of the proposed capacity additions were coal-based. Since that time, however, coal has been assaulted by climate change concerns and changing political climates. As a result, 54 percent of all coal plants ordered since 2000 have had their permits denied or postponed. In one case last year, Secretary of the Kansas Department of Health and Environment (KDHE) Roderick Bremby, denied an expansion permit for an existing coal plant solely because of CO2 emissions. In his ruling, Bremby argued that he “(believed) it would be irresponsible to ignore emerging information about the contribution of carbon dioxide and other greenhouse gases to climate change.” Kansas Governor Kathleen Sebelius, recently vetoed a state bill that would have allowed the coal plant expansion to go forward by removing the power of the KDHE to make this type of broad ruling. In response to proposed carbon restrictions, four major U.S. banks recently stated 20

on the utility front. Several utilities already have permitted plants and are working to bring that power online. A recent Wood Mackenzie report on the issue of coal plant cancellations reported that over the next few years already-permitted coal capacity will cushion the impact of permit denials. In the longer term (i.e., past 2012), increased demand for natural gas brought about by coal permit denials will cause significant pressures on gas supplies and prices. Wood Mackenzie forecasts suggest that growing competition for natural gas between industrial users, home users, and utilities will run headlong into slowing domestic natural gas production by 2013. Greater levels of imports will be required and prices will rocket to $8.50/mmbtu and higher. Slow development timeframes for LNG import facilities will only serve to exacerbate price volatility and spikes. Moving beyond 2017, Wood Mackenzie forecasts suggest that if coal-fueled power remains restricted, there will be serious negative impacts on the gas and energy markets as demand and prices continue to surge. This scenario was echoed by American Electric Power (AEP) CEO Michael Morris, in a February Reuters article. Morris argued that we would find ourselves in a “classic electric shortage” if we refused to make use of our coal

resources. Predicting economic problems, he noted “you simply can’t pare off plant after plant and have the U.S. economy leap forward in any way, shape or form.” The fact that coal’s bad press is rooted in its past only adds to the frustration. Peabody Energy Chairman Greg Boyce, noted in a March 2008 Christian Science Monitor article that current technologies are “15 to 20 percent more carbon-efficient than the plants they replace” and can serve as an excellent and affordable transition strategy until the time when carbon capture technologies, or some other means of addressing carbon emissions, becomes market-ready. Ironically, canceling new plants ensures that the less efficient technologies will remain in operation, welcomes higher fuel prices, ensures our sustained reliance on foreign energy sources, and – as noted above – courts electrical system instability. While news of coal’s recent setback has given environmental and special interest groups a few months worth of schadenfreude, all is not lost; there are still many bright points on which the industry can focus. First, if 54 percent of proposed plants in the past eight years have been postponed or canceled, that means the other 46 percent are being approved or are still in process. In fact, the U.S. energy industry is currently carrying out the largest buildout of new coal-fueled plants in a generation! For example, an advanced ultra-supercritical 600 MW plant proposed by an AEP subsidiary has just received approval from Arkansas’ and Louisiana’s public service commissions. Further requests are pending in Texas and with the Arkansas Department of Environmental Quality, but company representatives are confident they will receive final approvals in 2008. Secondly, recent research from the Natural Environment Research Council has suggested that water and minerals in deep layers of porous sandstone are likely to react quickly with sequestered CO2, forming a stabilized product that could not seep back to the surface. Research like this will help move us closer to addressing the demand that coal-fueled power provide carbon capture and sequestration options. Finally, the input of industry experts and academics near to the issue is still being heard by officials. Energy Secretary Samuel Bodman received a report last year from the National Petroleum Council that described how our energy appetite will expand by 60 american coal council


percent to 2030; fossil fuels are expected to make up 83 percent to 87 percent of that growth. Report authors made it clear to the secretary that “fossil fuels will remain indispensable.” Again, there are bright points on which the industry can focus, but there is a lot of work to be done correcting perceptions and encouraging people to look beyond knee-jerk and unfounded rejections of coal. As the advocates for the affordability, abundance, and rapidly improving environmental record of coal and coal-fueled

energy, our industry cannot afford to drop the ball. I believe that it was Albert Einstein that defined insanity as doing the same thing over and over again and expecting different results. Other countries, such as South Africa, are currently experiencing the power shortages and rapid price increases associated with limited coal-based generation. The opening sentences of this article paint a graphic picture of what we will need to accept should we continue down our shortsighted path of canceling coal plants. We

can choose to learn from the mistakes and misfortunes of others, or we can trundle along after them, hoping that for some reason our experience will not be the same. We know that we can use our domestic coal resources cleanly and efficiently; choosing to ignore the benefits of using that resource would be – to use Mr. Einstein’s phrase – insane.  u Jason Hayes is the communications director for the American Coal Council (www.clean-coal.info).

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Why is Fuel Flexibility Like a

Shock Absorber? By Jamie Heller, Hellerworx, Inc.

Editor’s Note: Jamie will be addressing this issue at the ACC’s 2008 Fuel Flexibility Strategies & Tactics for Coal Consumers Conference, July 29 to 30, 2008 at the The Sheraton Inner Harbor Hotel – Baltimore, Md. Conference information is available on the ACC’s Web site: (www.clean-coal.info).

A

number of years ago, analysts began publishing materials on structural changes then occurring in the coal and transportation markets that were going to essentially take the “shock absorbers” out of the supply chain. The forecasts predicted greater coal price volatility; they were right. We are now living in that world. This article explores steps that electric generators should consider to restore the shock absorbers that producers, transportation companies, and power companies removed. The suggestions fall under the rubric of “fuel flexibility.” How did this happen? Over the past decade a series of developments – independent of each other but cumulative in their effects – have resulted in an approach to mining, transporting, storing and burning coal that has left many coal consumers increasingly vulnerable to supply interruptions and price volatility. Examples include: 1. Changes in mining to make greater use of highly capital intensive techniques such as longwalls, super sections and large surface mining operations, which operate round-the-clock and minimize production costs, but also eliminated surge capacity. 2. The consolidation of smaller mining operations into larger often publicly traded entities, which are sensitive to Wall Street pressure to grow earnings american coal council

on a regular basis, have shown a hesitancy to expand capacity in a fashion that could undermine favorable market pricing. 3. The abandonment or sale of rail assets that were deemed not sufficiently profitable reduced excess capacity and improved rates of return, but also limited the ability of railroads to handle traffic peaks. 4. T he consolidation of barge companies and scrapping of barges to reduce excess capacity and take advantage of high scrap steel prices improved returns, but limited the ability to handle traffic increases. 5. The paring of coal stockpiles to comply with Public Service Commission mandates or to reduce inventory-carrying costs removed a key buffer. 6. The implementation of more stringent environmental standards and the addition of complicated pollution control related equipment on power plants profoundly affected a utility’s coal choices. The first four items all had the effect of making the producers and transporters less able or willing to respond to short-term demand fluctuations in a manner that would avoid supply shortages or congestion. The fifth item represented a calculated risk taken by consumers to reduce costs, and the sixth item should actually improve fuel flexibility, but may not. It is this last item on which this article focuses. 23


Why is fuel flexibility so important? Four of the previously listed items, which have tended to create supply side inelasticity, are largely beyond the control of coal-fueled generators. Consolidation among suppliers and transporters could be offset, for example, by utilities re-entering the mining business (a largely failed proposition when last tried), or building connections to multiple rail carriers (impractical in some instances and with unclear benefits in the current environment). These strategies, however, have a high probability of failure. In the past, competition among producers from the same region for new business would usually be sufficient to force prices down to cost-based levels, which are the hallmark of a competitive market. (These costs may or may not include the full rate of return on invested capital depending on market conditions). Currently, a dearth of competitors or a lack of interest in new business because better opportunities exist elsewhere for the suppliers (e.g., coal exports) or transporters (e.g., intermodal

traffic), may result in bids for new business that are unrelated to costs, or simply “no-bids.” Those generators that have the capability and willingness to reach beyond their traditional supply sources and expand the field, will likely be better off than those without that freedom or motivation. The key question is “What must one pay for this flexibility, and is the gain in reduced fuel prices and increased availability worth the cost?” As shown in Figure 1 (below), during the last two years, the spread between the coal prices from the major U.S. coal supply basins have changed dramatically. In June 2006, the price difference between an Illinois basin coal (ILB) and a northern Appalachia coal (NAPP) was less than $5/ ton. In March of 2008, that difference had more than quintupled to $28/ton. Between January 2007 and March 2008, the spread between a central Appalachia coal and a PRB coal increased by $40/ton from $30/ ton to $70/ton. During this same period, import coal prices (not shown on the chart) more than doubled.

Figure 1 Spot Coal Prices (March 2006-March 2008) Average Weekly Coal Commodity Spot Prices Business Week Ended April 18, 2008

Potential Savings: An Example Using price data like that in the chart, Figure 2 (right) shows what the advantages of switching fuels would have been over 18 months to: • A scrubbed unit located in the Mid-Ohio river region that was burning a NAPP coal in September 2006 that switched to an ILB coal by March 2008. • An unscrubbed unit located in the Mid-Ohio river region that was burning a CAPP coal in September 2006 that switched to a PRB coal by March 2008.

The red arrows show how much the cost/MMBtu would have increased had the generator stayed with the same coal type. The blue arrows show how the costs would have changed had the generator switched to a cheaper coal. The green shaded cells show that the potential annual savings from switching at the scrubbed unit from NAPP to ILB coal would have been $23 million. At the unscrubbed unit the value of switching from CAPP to PRB coal would have been $37 million per year. In the case of the unit switching to PRB coal, costs would actually decline. Responding to Price Volatility The example excludes analysis of many key factors including, for example: • What capital investment is required to enable fuel switching? • What technical boiler (e.g., ability to prevent slagging) or coal yard (e.g., lack of space) constraints may make a switch infeasible? • What regulatory constraints (e.g., permits) exist to fuel flexibility? • Do existing fuel contracts shield the generator from the market? • How would a different fuel affect the longterm maintenance and outage costs for the unit? • Will the current fuel price differentials that make a switch favorable prevail long enough to ensure a payback? • Will the costs of switching be borne by the same group (e.g., customers) that benefits from the fuel savings or will it be borne by shareholders?

Source: EIA Web site

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• Will the change in fuel costs affect unit dispatch and opportunities for off-system sales? american coal council


Figure 2 Potential Savings from Fuel Flexibility

Mid-Ohio River Coal Delivery Components of Delivered Illinois Basin Point Coal Price Coal March 2008 Btu 11,800 SO2 5.00 Commodity Price $52.00 Transportation Rate $5.80 Delivered Price/ton $57.80 Delivered Price ($/MMBtu) $2.45 SO2 Allowance Cost/MMBtu $1.75 Total Cost/MMBtu Unscrubbed $4.20 Total Cost/MMBtu Scrubbed $2.66

September 2006 Btu SO2 Commodity Price Transportation Rate Delivered Price/ton Delivered Price ($/MMBtu) SO2 Allowance Cost/MMBtu Total Cost/MMBtu Unscrubbed Total Cost/MMBtu Scrubbed Savings/Yr by ILB Switch Savings/Yr by PRB Switch

11,800 0 5.00 $34.00 $5.80 $39.80 $1.69 $1.75 $3.44 $1.86

Delivered Price for: Northern Appalachian Powder River Basin Coal Coal

Central Appalachian Coal

13,000 3.00 $80.00 $4.60 $84.60 $3.25 $1.05 $ $4.30 $3 $3.47

8,800 0.80 $14.05 $27.10 $41.15 $2.34 $0.28 $2.62 $2.47

12,500 1.20 $84.30 $3.00 $87.30 $3.49 $0.42 $ $3.91 $ $3.69 $ 9

13,000 13 0 3.00 3 $39.00 $3 0 $4.60 $4 $43.60 $4 0 $1.68 $1 $1.05 $1 $2.73 $2 $1.81 $1 $23 $ M $2

8,800 0 0.80 $9.75 $27.10 0 $36.85 5 $2.09 $0.28 $2.37 $2.21

12,500 12 0 1.20 $54.00 $5 0 $3.00 $ 0 $57.00 $5 0 $2.28 $ 8 $0.42 $ 2 $2.70 $ 0 $2.42 $ 2 $37 M

Note: EIA webste, SNL Data, Hellerworx estimates. The above estimates assume that Flue Gas Desulfurization (FGD or "scrubber" equipment) with a 95% SO2 removal capability is installed at each location.

The answers to these questions are admittedly company, plant and unit specific. The general proposition that increased coal price volatility, coupled with large changes in the spreads among coal types calls for – at a

american coal council

minimum – re-examining the economics of fuel flexibility at potentially affected units. Some mistakes that have and are likely to be made through insufficient attention to this issue, include:

• Constructing a scrubber that cannot burn high chlorine content coal, thereby losing access to a cheap coal source. • Rejecting the PRB coal option based on the assumption that having installed a scrubber the least cost option will be high sulfur coal. • Assuming that the “easy to burn” U.S. coals will not be exported long term, creating price and availability problems.

This analysis focuses simply on the relationship between capital expenditures (capex) and fuel cost savings. The next frontier for plant managers will be a better understanding of how the mix of fuels used, plus unit operation and maintenance practices, affect unit output and availability. In a world where it may be very difficult to construct new coal-fired units, natural gas power is likely to be more costly than in the past. The costs of coal-unit failure are very high; understanding how to extract the maximum from this endangered species of generating unit will be critical.  u Jamie Heller is president of Hellerworx, Inc. (www.hellerworx.com).

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Dominion energy’s Virginia City Hybrid energy Center: Using CFB to meet energy and environmental needs By Dan genest, Dominion energy

J

ust over the first ridge beyond the Wise County, Va. town of St. Paul, lies a reclaimed mine site known as Virginia City. Once – back in the days when coal was pulled from the rich seams and miners worked round the clock – Virginia City was a bustling community. But times changed, the seams were exhausted and the mines and the jobs moved elsewhere. For decades, Virginia City lay abandoned. But that image is changing. Today, huge earthmovers push dirt, leveling the land for the construction of a 585-megawatt coal-powered electric generation station. Dominion, a Richmond-based energy company, has chosen the site for its proposed Virginia City Hybrid Energy Center.

The energy center, scheduled to come online in 2012, will be a state-of-the-art facility demonstrating that coal can be protective of the environment while supplying electricity to meet the commonwealth’s growing demands. “The Virginia City Hybrid Energy Center will make use of the very latest environmental controls to reduce emissions,” said James K. Martin, Dominion’s senior vice president of business development and generation construction. “It will also use a boiler technology called circulating fluidized bed (CFB) that has been approved by the Department of Energy as a ‘clean-coal’ technology. In addition, the CFB design gives us the ability to burn a wide variety of coals and other fuels, including waste coal,

as well as biomass, or waste wood.” The station will have two CFB boilers that will power a turbine and produce 585 megawatts of electricity – enough electricity for about 146,000 homes at peak demand. Martin said CFB is the right choice for the Virginia City site because it has the ability to burn a wide variety of coals. “While Southwest Virginia still has ample resources of coal, it has a wide variety of coals – coals with differing Btu values, ash contents and sulfur contents. CFB technology gives us the option of using all those coals and it is partly that flexibility that makes the station economically feasible.” In addition to economics, the facility has strong environmental promise, as well.

The site of the proposed Virginia City hybrid energy Center american coal council

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“By burning gob, we will help rid the region of a major environmental problem and help clean up rivers and streams” – Pamela F. Faggert, Dominion’s vice president and chief environmental officer New design technologies mean that it will be able to capture carbon dioxide for storage when carbon capture technologies become commercially viable. CFB boilers also reduce many other emissions – particularly sulfur dioxide and nitrogen oxides in the boiler. Its clean burning nature has led the Department of Energy to bestow the title of clean-coal technology on CFB boilers. CFB technologies will also allow the station to burn waste coal, or “gob.” Gob piles are a major environmental challenge throughout Southwest Virginia as acids and chemicals from the gob leach into groundwater and taint rivers and streams. “By burning gob, we will help rid the region of a major environmental problem and help clean up rivers and streams,” said Pamela F. Faggert, vice president and chief environmental officer for Dominion. CFB Technology The technology works like this: 1. Fuel and crushed limestone are fed into the combustion chamber of the boiler while air is blown in which “fluidizes” the mixture, making it act almost like a liquid. 2. The mixture burns at a relatively low temperature reducing the formation of nitrogen oxides. At the same time, the limestone chemically reacts with the sulfur dioxide allowing it to be removed with the ash. 3. Heat from the combustion process is used to produce steam that spins the turbine to produce electricity. 4. As the flue gases exit the boiler a selective non-catalytic reduction process further reduces NOx.* 5. The flue gas stream then travels through a dry scrubber where limestone powder is injected to further reduce SO2.

6. Finally, the gasses pass through a fabric filter, commonly know as a bag house, which reduces particulate matter by about 99.999 percent. 7. The gasses then exit through the stack. 8. The combination of the desulphurization processes and the bag house also reduce mercury emissions by about 98 percent. In addition, Faggert said the company plans to add a technology called activated carbon injection (ACI) to remove even more mercury from flue gases. The hybrid energy center will be the first CFB boiler in the country to use this technology. “Since ACI has never been used on a CFB before, we can’t predict the results, but we are excited about investigating the use of this technology,” Faggert said. “CFB technology and the other controls we will install will ensure that this power station does better than required by any state or federal regulations in reducing emissions.” Dominion selected circulating fluidized bed technology for the Virginia City site after studying the applicability of traditional pulverized coal (PC), supercritical PC, and integrated gasification technologies. Pulverized coal, while an efficient and proven means of coal-powered generation, requires wet scrubbers with corresponding increased water consumption to achieve SO2 reductions. “Water minimization is critical to the successful use of the Virginia City site,” Martin said. “CFB boilers using air-cooled condensers and dry scrubbers are clearly the best choice for the site.” Pulverized coal units require a consistent quality higher Btu-type coal than CFB boilers.

“While there are high Btu coals in the Virginia coalfields,” Martin said, “it is not clear if there is enough high quality coal that is economically available over the projected life of the station.” Integrated coal gasification combined cycle (IGCC) systems are an emerging and promising technology. These stations have a chemical plant that converts coal to synthetic natural gas – syngas – and then uses that gas to run turbines that produce electricity. After a considerable amount of research and study, Dominion concluded IGCC also was not a good option for the Virginia City location. “Essentially,” Martin said, “as an evolving technology, IGCC does not yet have the track record on units of the size we are proposing. In addition, it requires a constant and consistent quality of coal for conversion to natural gas. That would not allow us the fuel flexibility inherent with CFBs. It is the CFB’s ability to use a wide variety of fuels that makes this project economically feasible.” Global warming is becoming a much larger issue nationally and the public outcry to reduce carbon dioxide emissions is growing. Dominion’s Jim Martin believes that national legislation requiring C02 reductions is inevitable. The answer, however, he said is not to burn less coal but to find ways to burn it more cleanly. “We believe the Virginia City Hybrid Energy Center will be among the cleanest coal-powered stations in the country. More importantly, it has the potential to demonstrate through carbon capture and sequestration that coal can and must be a viable energy source for decades to come.”  u Dan Genest is senior corporate communications specialist at Dominion Generation (www.dom.com).

* In selective non-catalytic reduction, NOx emissions are converted into nitrogen and water by injecting urea or ammonia into the flue gas. 28

american coal council


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TEMA Systems Inc. 7806 REDSKY DRIVE CINCINNATI, OH 45249 Phone: 513-489-7811 Fax: 513-489-4817


2008 Membership Directory Issue 1 • 2008

ECONOMIC, ABUNDANT/SECURE AND ENVIRONMENTALLY SOUND

A Coal Powered North America

In this issue... FutureGen Update Fuel Flexibility Climate Change


CONTENTS ACC Vision and Mission Statement ............. 1 Board of Directors .............. 1 Membership Coupon and Information .................. 2 ACC Events ......................... 2 Buyers’ Guide Listings ................................ 5 On the cover: The cover of this issue of American Coal illustrates the connection between North America’s energy needs and the coal industry. Photographer John Mueller took the original photo of the train.

Published for: AMERICAN COAL COUNCIL 1101 Pennsylvania Ave. N.W., Ste. 600 Washington, DC 20004 Tel.: 202-756-4540 Fax: 732-231-6581 ACC Editorial Review Board Janet Gellici, American Coal Council Jason Hayes, American Coal Council Rick James, We Energies Andy Marti, Martin Engineering Beth Sutton, Peabody Energy

Published by: Lester Publications, LLC 2131 NW 40th Terrace – Suite A Gainesville, FL 32605 Main line: (352) 338-2700 Toll Free: (877) 387-2700 President Jeff Lester | (866) 953-2189 Sales Director Sean Davis | (888) 953-2190 Managing Editor Bonnie Winter Fedak | (866) 953-2181

American Coal Council 2008 Board of Directors Coal Suppliers Bill Davison Vice President Sales & Marketing Foundation Energy (2007-2009) VP Coal Suppliers & Membership Chair Matt Levar General Manager Sales & Marketing Rio Tinto Energy America (2007-2008) Tim Whelan Vice President Sales Alliance Coal LLC (2008-2010) Coal Consumers Bud Walker Regional Vice President, Fuels Midwest Generation (2006-2008) VP Coal Consumers Dan Lidisky Manager Coal Supply & Business Development AmerenEnergy (2008-2009) Jeff Wallace Vice President Fuel Services Southern Company (2008 - 2010) Energy Traders Steve Miller President COALTRADE, LLC (2007-2009) President-Elect 2009, Treasurer, Chair HR & Compensation

Transportation Bob Brautovich AVP Coal Marketing-West BNSF Railway (2007-2009) Danny Smith Senior VP Energy & Properties Norfolk Southern Corporation (2006-2008) VP Transportation Jim Garrett Plant Manager AEP MEMCO LLC (2008-2010) Coal Support Services Mike Durham Ph.D., President ADA-ES, Inc. (2006-2008) VP Coal Support Services Scott Hutter President & CEO Martin Engineering (2008-2010) Immediate Past President Keith Drohan Senior Market Originator Dominion Energy (2007-2009) At Large Tom Vorholt Vice President Dry Cargo Sales Ingram Barge Company (2007-2009) ACC President 2008

Dan Vaughn Director Coal Services United Power/ICAP (2007-2008)

Graphic Designer John Lyttle | (204) 953-2180 Account Executives Quinn Bogusky, Jeanine English, Shannon Evans, Mike Mechaney, Louise Peterson, Toban Vexzon

American Coal Council

© 2008 American Coal Council. All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the ACC.

Vision Statement

Disclaimer The opinions expressed by the authors of the editorial articles contained in American Coal magazine are those of the respective authors and do not necessarily represent the opinion of the American Coal Council or its member companies

Mission Statement

Printed in Canada Please recycle where facilities exist.

The American Coal Council (ACC) strives to serve as the pre-eminent business voice of the American coal industry. The American Coal Council (ACC) is dedicated to advancing the development and utilization of coal as an economic, abundant/secure and environmentally sound fuel source. The Association promotes the lawful exchange of ideas and information regarding the coal industry. It serves as an essential resource for companies that mine, sell, trade, transport, or consume coal. The ACC provides educational programs, advocacy support, peer-to-peer networking forums and market intelligence that allow members to advance their marketing and management capabilities. 2008 MEMBERSHIP DIRECTORY

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Co

Membership benefits include educational programming and technical seminars, advocacy support, broad-based networking, Web site,

Membership Coupon Join the 170 companies that recognize the importance of belonging to an Association that serves as the pre-eminent business voice of the American coal industry and advocates for coal as an economic, abundant/secure and environmentally sound fuel source. The American Coal Council (ACC) is an alliance of coal, utility, trading, transportation, terminal and coal support service companies, advocating a non-adversial, partnering approach to business. The ACC facilitates the lawful exchange of ideas and information regarding the American coal industry. It serves as a essential resource for companies that mine, sell, trade, transport or consume American coal. The ACC also serves as a resource for those wishing to expand or enhance business relationships in North American and international coal markets.

electronic and printed membership directory inclusion, newsletter and members-only electronic updates, database resources, policy input, referrals and discounts on events and industry publications.

Yes

,

please send me membership information!

Name ________________________________________________________ Title __________________________________________________________ Company _____________________________________________________ Address ______________________________________________________ City _______________________State _____________ Zip _____________ Phone ______________________ Fax ______________________________ E-mail ________________________________________________________ Mail or FAX to: American Coal Council 1101 Pennsylvania Ave. N.W., Suite 600 • Washington, D.C. 20004 • 732-231-6581 ~ Fax

2008 Event Dates Spring Coal Forum March 10-12, 2008 – Miami, FL Fuel Flexibility Conference July 29-30, 2008 – Baltimore, MD Coal Market Strategies October 6-8, 2008 – Williamsburg, VA Coal Trading Conference December 10-11, 2008 – New York, NY

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For additional information visit www.clean-coal.info or call 202-756-4540

AMERICAN COAL COUNCIL

F:\M Mo


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F:\MISC\ADS\LE-008\LE-008r.cdr Monday, November 12, 2007 9:49:46 AM


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Coal Suppliers Alliance Coal, LLC www.arlp.com Tim Whelan Vice President, Sales 1717 South Boulder Suite 400 Tulsa, OK 74119 Phone: 918-295-7655 Fax: 918-295-7360 Tim.whelan@arlp.com Robert Sachse Executive Vice President, Marketing P.O. Box 22027 Tulsa, OK 74121-2027 Phone: 918-295-7615 Fax: 918-295-7360 robert.sachse@arlp.com Alpha Natural Resources, LLC www.alphanr.com Ronald G. Ross General Manager Western Region P.O. Box 839 Price, UT 84501 Phone: 435-637-8650 Fax: 435-637-8653 rross@tanoma.com Francis Frank-V. Kelly Manager, Midwest Sales 2137 Vermillion St. Suite 150 Hastings, MN 55033 Phone: 651-437-9455 Fax: 651-437-9496 fkelly@alphanr.com

Arch Coal, Inc. City Place One Drive Suite 300 St. Louis, MO 63141 www.archcoal.com Andy Blumenfeld Vice President, Market Research Phone: 314-994-2876 Fax: 314-994-2719 ablumenfeld@archcoal.com

2008 MEMBERSHIP DIRECTORY

Mark Canon Vice President of Regional Sales Phone: 314-994-2803 mcanon@archcoal.com BHP Billiton 1150 Omega Drive Pittsburgh, PA 15205 www.bhpbilliton.com George Karpakis Phone: 412-788-7170 Fax: 412-788-7177 george.j.karpakis@ bhpbilliton.com Carpenter Creek, LLC 5799 Westchester Farm Drive Weldon Spring, MO 63304 Jerry Daseler Vic President Marketing & Sales Phone: 636-399-7266 Fax: 212-490-0557 jdaseler@sbcglobal.net Central Coal Company 148 Bristol East Road Bristol, VA 24202 Clark Wisman Sales & Marketing Phone: 276-669-8599 Fax: 276-669-3543 cwisman@centralcoal.com Chevron Mining Inc. 116 Inverness Drive East Suite 207 Englewood, CO 80112 www.chevrontexaco.com James DeMino General Manager, Sales Phone: 303-930-4060 Fax: 303-930-4043 jdemino@chevrontexaco.com Dave Lofe Sales Manager Phone: 303-930-4050 Fax: 303-930-4043 dlofe@chevrontexaco.com

Coal Marketing Company (USA), Inc. 1180 Peachtree St. Suite 2420 Atlanta, GA 30309 www.cmc-coal.com Francisco Garcia Marketing Manager Phone: 678-608-2841 francisco.garcia@cmc-coal.com CoalTek, Inc. 2189 Flintstone Drive Suite A Tucker, GA 30084 www.coaltek.com Christopher Poirier CEO Phone: 770-934-7030 Fax: 770-934-7753 cpoirier@coaltek.com Rolando Sanz-Guerrero President Phone: 734-227-0095 Fax: 770-934-7753 rsg@coaltek.com Commonwealth Coal Services, Inc. 5413 Patterson Ave. Suite 200 Richmond, VA 23226-2023 T. Wallace Taylor Vice President Phone: 804-282-9833 Fax: 804-282-9836 wallacetaylor@ commonwealthcoal.com Robert H. Scott President Phone: 804-282-9822 Fax: 804-282-9836 bobscott@ commonwealthcoal.com Compass Coal Services, LLC P.O. Box K-206 Richmond, VA 23288 www.compassenergy.net William E. Massey Jr. President Phone: 804-288-9500 Fax: 804-288-9502 wmassey@compassenergy.net

CONSOL Energy, Inc. 1800 Washington Road – Consol Plaza Pittsburgh, PA 15241-1421 www.consolenergy.com Robert F. Pusateri President – CONSOL Energy Sales Phone: 412-831-4401 Fax: 412-831-4594 bobpusateri@ consolenergy.com Drummond Company, Inc. 530 Beacon Parkway West Suite 800 Vestavia Hills, AL 35209-3196 www.drummondco.com George E. Wilbanks President, Sales Phone: 205-945-6410 Fax: 205-945-6440 gewilbanks@ drummondco.com Evergreen Energy, Inc. www.kfx.com Ted Venners Chairman & CEO 1225 17th St., Suite 1300 Denver, CO 80202 Phone: 303-293-2992 Fax: 303-293-8430 tvenners@kfx.com Kevin Collins President/CEO 55 Madison St., Suite 745 Denver, CO 80206 Phone: 303-293-2992 Fax: 303-293-8430 kcollins@kfx.com Fervim Ingenieria SA DE CV 452 N. Washington St., PMB 138 Eagle Pass, TX 78852 Fernando Mendoza Phone: 512-440-1564 Fax: 512-440-1564 fervim@yahoo.com

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Foundation Energy Sales, Inc. www.foundationcoal.com Larry Deal Vice President Sales 391 Inverness Parkway Suite 333 Englewood, CO 80112 Phone: 303-749-8430 Fax: 303-749-8449 ldeal@foundationcoal.com Bill Davison Vice President Sales & Marketing 999 Corporate Blvd. Suite 300 Linthicum Heights, MD 21090 Phone: 410-689-7657 Fax: 410-689-7651 bdavison@ foundationcoal.com Glencore Ltd. 301 Tresser Blvd. Stamford, CT 06901 www.glencore.com John McConaghy Coal Executive Phone: 203-328-4958 Fax: 203-978-2630 john.mcconaghy@ glencore-us.com James River Coal Company 901 East Byrd St., Suite 1600 Richmond, VA 23219 Peter Socha President/CEO Phone: 804-780-3003 Fax: 804-649-9319 peter.socha@ jamesrivercoal.net James River Coal Sales, Inc. 120 Prosperous Pl., Suite 110 Lexington, KY 40509 Mike Weber President Phone: 859-543-0090 Fax: 859-543-0992 mike.weber@ jamesrivercoal.com

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Kiewit Mining Group, Inc. 1000 Kiewit Plaza Omaha, NE 68131 www.kiewit.com Mike Nimmo Marketing Manager Phone: 402-536-3630 Fax: 402-271-2908 mike.nimmo@kiewit.com John Faulconer Director, Internal Audit & Security Phone: 402-536-3645 Fax: 402-271-2908 john.faulconer@kiewit.com Murray Energy Corporation 29325 Chagrin Blvd. Suite 300 Pepper Pike, OH 44122 Robert E. Murray Chairman, President/CEO Phone: 216-765-1240 Fax: 216-765-2654 bobmurray@coalsource.com Natural Resource Partners L.P. Nick Carter President/COO 1035 Third Ave. P.O. Box 2827 Huntington, WV 25727-5401 Phone: 304-522-5757 Fax: 304-522-5401 ncarter@wpplp.com Chuck Kerr President, Great Northern Power Development 601 Jefferson St., Suite 3600 Houston, TX 77002 Phone: 713-751-7590 Fax: 713-751-7563 ckerr@quintanaminerals.com

NexGen Coal Services Ltd. www.nexgen-group.com

Rhino Energy 3120 Wall St., Suite 310 Lexington, KY 40513

Charles S. McNeil President/CEO 3300 S. Parker Road Suite 520 Aurora, CO 80014 Phone: 303-751-9230 Fax: 303-751-9210 cmcneil@nexgen-group.com

Andy Cox Phone: 859-519-3610 Fax: 859-389-6588 awcox@rhinoenergyllc.com

Jon Kelly Manager 500 S. Taylor St., Unit 246 Amarillo, TX 79101-2446 Phone: 806-371-7341 Fax: 806-371-7528 jonkelly@aol.com Peabody Energy 701 Market St., Suite 900 St. Louis, MO 63101-1826 www.peabodyenergy.com James Campbell Jr. Senior Vice President Sales & Marketing Phone: 314-342-7525 Fax: 314-342-7529 jcampbell@ peabodyenergy.com Vaughn Mavers Vice President Sales & Marketing Phone: 314-342-7522 Fax: 314-342-7529 vmavers@peabodyenergy.com Steve Miller President, COALTRADE LLC Phone: 314-342-7590 Fax: 314-342-7609 smiller@peabodyenergy.com

Nick Glancy Phone: 606-519-3601 Fax: 859-389-6588 nglancy@rhinoenergyllc.com Rio Tinto Energy America www.riotinto.com R. Michael Kelley Director of Sales and Marketing Box 3009 505 S. Gillette Ave. Gillette, WY 82717 Phone: 307-687-6121 Fax: 307-687-6009 mike.kelley@riotinto.com TECO Coal Corp. www.tecocoal.com Joe W. Lee Vice President Sales 11523 Glen Abbey Way Charlotte, NC 28277 Phone: 704-844-0407 Fax: 704-844-0408 jlee17@carolina.rr.com Edward L. Billips Director Utility & Industrial Sales P.O. Box 2135 Pikeville, KY 41502 Phone: 606-437-5910 Fax: 606-437-5912 billipse@bellsouth.net

Progress Fuels Corporation P.O. Box 308 Ceredo, WV 25507 www.progressfuels.com Butch Smith Phone: 304-526-0711 butch.smith@ progressfuels.com

AMERICAN COAL COUNCIL


Usibelli Coal Mine, Inc. www.usibelli.com Steve W. Denton Vice President Business Development P.O. Box 1000 Healy, AK 99743 Phone: 907-683-9710 Fax: 907-683-2253 info@usibelli.com William S. Brophy Vice President Customer Relations 100 Cushman St., Suite 210 Fairbanks, AK 99701-4674 Phone: 907-452-2625 ext. 232 Fax: 907-451-6543 info@usibelli.com Westmoreland Coal Company A Trusted Name in Coal Since 1854

Westmoreland Coal Sales Co. 2 North Cascade Ave. 14th Floor Colorado Springs, CO 80903 Todd Myers President Phone: 719-448-5802 Fax: 719-448-5824 todd.myers@ westmoreland.com

Xcoal Energy & Resources P.O. Box 551 Latrobe, PA 15650 Ernie L. Thrasher President Phone: 724-520-1630 Fax: 724-537-6475 xcoal@xcoal.com

Coal Consumers Alliant Energy 4902 N. Biltmore Lane P.O. Box 77007 MSN GO 3S Madison, WI 53718-2148 www.alliantenergy.com

2008 MEMBERSHIP DIRECTORY

Dan Checki Director, Fossil Fuel Procurement Phone: 608-458-3125 Fax: 608-458-0137 danielchecki@ alliantenergy.com Ameren Energy Fuels & Services Co. 1901 Chouteau Ave. St. Louis, MO 63101 www.ameren.com Mike Mueller President Phone: 314-554-4174 Fax: 314-554-4188 mmueller@ameren.com Jim Sobule Vice President & Deputy General Counsel Phone: 314-554-2276 Fax: 314-554-4014 jsobule@ameren.com Dan Lidisky Manager, Coal Supply & Business Development Counsel Phone: 314-554-2645 Fax: 314-554-4188 dlidisky@ameren.com American Electric Power www.aep.com Ron Young Managing Director Transportation Services 155 W. Nationwide Blvd. Suite 500 Columbus, OH 43215 Phone: 614-583-6303 Fax: 614-583-1619 rlyoung@aep.com Mike DeBord VP Transmission & Combustion Services P.O. Box 16036 Columbus, OH 43216-0036 Phone: 614-583-7454 Fax: 614-583-1617 smdebord@aep.com Arizona Public Service 400 North Fifth St., MS8974 Phoenix, AZ 85004 www.apsc.com

Matthew Reid Fossil Fuel Procurement Manager Phone: 602-250-3109 Fax: 602-250-3658 Z78047@apsc.com

Keith Drohan Senior Market Originator Phone: 804-787-5765 Fax: 804-787-6482 Keith.drohan@dom.com

Jennifer Cannon Commodity Lead Phone: 602-250-3188 Fax: 602-250-3628 jennifer.cannon@aps.com

DTE Coal Services 414 S. Main St., Suite 200 Ann Arbor, MI 48104 www.dtecs.com

Basin Electric Power Cooperative 1717 East Interstate Ave. Bismarck, ND 58503 www.basinelectric.com Joe Leingang Director Fuels & Transportation Phone: 701-355-5648 Fax: 701-255-5144 jleingang@bepc.com Constellation Energy 111 Market Place, Suite 200 Baltimore, MD 21202 www.constellation.com John T. Long President, Power Generation Phone: 410-230-4910 Fax: 410-230-4669 john.long@constellation.com Dayton Power & Light Company 1065 Woodman Drive Dayton, OH 45432 Teresa Marrinan VP, Commercial Operations Phone: 937-259-7835 Fax: 937-259-7250 teresa.marrinan@dplinc.com Michael Perkins Manager, Structured Transactions Phone: 937-259-7225 Fax: 937-259-7250 michael.perkins@dplinc.com

Dominion Energy P.O. Box 25652 Richmond, VA 23260 www.dom.com

Matt Paul President, DTE Coal Services Phone: 734-887-2053 Fax: 734-887-2248 paulm2@dteenergy.com E.ON U.S. LLC 220 W. Main St., 4th Floor Louisville, KY 40202 www.lgeenergy.com Mike Dotson Manager LG&E & KU Fuels Phone: 502-627-2322 Fax: 502-627-3243 mike.dotson@eon-us.com Caryl Pfeiffer Director Corporate Fuels & By-Products Phone: 502-627-2274 Fax: 502-627-3243 caryl.pfeiffer@eon-us.com Emery Energy 159 West Pierpont Ave. Salt Lake City, UT 84101 www.emeryenergy.com Benjamin Phillips President Phone: 801-364-8283 utechmech@netzero.com Harry Gatley Senior Design & Test Engineer Phone: 801-364-8283 Entergy www.entergy.com Michael Kolbus Plant Manager 555 Point Ferry Road Newark, AR 72562 Phone: 870-698-4500 Fax: 870-698-4595 mkolbus@entergy.com

7


James Marbury General Manager, Nelson Plant 3500 Houston River Road Westlake, LA 70662 Phone: 337-494-6100 Fax: 337-494-6107 jmarbur@entergy.com FirstEnergy Generation Corp. 395 Ghent Road, #213 Akron, OH 44333 www.firstenergycorp.com Jim Mellody Director Fuel Supply Phone: 330-315-7450 Fax: 330-315-7464 mellodyj@ firstenergycorp.com

Bill Chrisman Environmental Phone: 563-264-4776 Fax: 563-264-4495 chrismanb@ grainprocessing.com

Intermountain Power Agency 10653 S. River Front Parkway, Suite 120 South Jordan, UT 84095 www.ipautah.com

Great River Energy 17845 E. Highway 10, P.O. Box 800 Elk River, MN 55330-0800 www.greatriverenergy.com

Reed Searle General Manager Phone: 801-938-1333 Fax: 801-938-1330 reed@ipautah.com

Carlyle Sulzer Manager Generation Services Phone: 763-241-2490 Fax: 763-241-6290 csulzer@grenergy.com

Lakeland Electric 501 E. Lemon St. Lakeland, FL 33801 www.lakelandelectric.com

Bob Cymbor General Manager Fuel Procurement Phone: 330-315-7456 Fax: 330-315-7464 cymborr@firstenergycorp.com

Al Christianson North Dakota Business Services Representative 2875 Third St., S.W. Underwood, ND 58576-9659 Phone: 701-442-7031 Fax: 701-442-7231 achristianson@grenergy.com

Gainesville Regional Utilities P.O. Box 147117 Station A 137 Gainesville, FL 32614-7117 www.gru.com

Holcim US Inc./St. Lawrence Cement Co. 6211 Ann Arbor Road P.O. Box 122 Dundee, MI 48131 www.holcim.com

Karen Alford Fuels Manager Phone: 352-334-3400, ext. 1730 Fax: 352-334-2786 alfordkc@gru.com

Jim Gilbert Commodity Manager, Solid Fuels & Raw Materials Phone: 734-529-4547 Fax: 7340 529-4237 jim.gilbert@holcim.com

Thomas Foxx Coal Analyst Phone: 352-334-3400, ext. 1736 Fax: 352-334-2786 foxxtj@gru.com Grain Processing Corporation 1600 Oregon Muscatine, IA 52761 www.graimprocessing.com Leona Fortenbacher Energy Buyer Phone: 563-264-4776 Fax: 563-264-4495 fortenbacherl@ grainprocessing.com

8

Christian Dueweke Commodity Manager, N. American Procurement Org. Phone: 734-529-4537 Fax: 7340 529-4237 Christian.dueweke@ holcim.com Indianapolis Power & Light Co. One Monument Circle Indianapolis, IN 46204 www.iplpower.com Dennis Dininger Director, Fuel Supply Phone: 317-261-8707 Fax: 317-630-0602 Dennis.dininger@aes.com

Rick Snyder Manager, Wholesale Energy & Fuels Phone: 863-834-6586 Fax: 863-834-8393 rick.snyder@ lakelandelectric.com Carol Rowland Fuels Coordinator Phone: 863-834-6583 Fax: 863-834-8393 carol.rowland@ lakelandelectric.com Louis Dreyfus Highbridge Energy Ken Jenkins VP, Fuel Management Services 1400 Urban Center Drive Suite 250 Birmingham, AL 35242 Phone: 205-445-0772 Fax: 205-445-0776 ken.Jenkins@ LDHEnergy.com Raphael Pierce VP, Domestic Coal 1400 Urban Center Drive Suite 250 Birmingham, AL 35242 Phone: 205-877-4501 Fax: 205-445-0776 raphael.piercer@ LDHEnergy.com Lower Colorado River Authority 3700 Lake Austin Blvd. Austin, TX 78703 www.lcra.com

Ingmar Sterzing Manager Fuels Phone: 512-473-3527 Fax: 512-473-4026 ingmar.sterzing@lcra.org Gage Dahmann Fuels Administrator Phone: 512-473-3578 Fax: 512-473-4026 gage.dahmann@lcra.com Luminant 1717 Main St., Suite 1900 Dallas,TX 75201 www.luminant.com Allen Childress Manager Fuels Group Phone: 214-875-9739 Fax: 214-875-9051 allen.childress@ luminant.com MidAmerican Energy Company 106 E. Second St. Davenport, IA 52801 www.midamerican.com Robert Quast Coal Portfolio Manager Phone: 563-333-8219 Fax: 563-333-8696 rsquast@midamerican.com Midwest Generation EME, LLC 440 S. La Salle St. Suite 3500 Chicago, IL 60605 www.mwgen.com Bud Walker Regional Vice President, Fuels Phone: 312-583-6041 Fax: 312-583-4916 ewalker@mwgen.com Larry Siler Manager Fuel Transportation Phone: 312-583-6068 Fax: 312-583-4916 lsiler@mwgen.com Minnesota Power 1259 N.W. Third St. Cohasset, MN 55721 www.mnpower.com

AMERICAN COAL COUNCIL


Kathy Benham Manager, Fuel Services Phone: 218-328-5036, ext. 4642 Fax: 218-328-6573 kbenham@mnpower.com Bill Boutwell Plant Manager Phone: 218-328-5036 Fax: 218-328-6573 wboutwell@mnpower.com NRG Energy, Inc. 211 Carnegie Center Princeton, NJ 08540 Matt Schweider Portfolio Director, Coal and Emissions Phone: 609-524-4777 Phone: 609-524-4540 Matt.schwieder@ nrgenergy.com Ginny Farrow Director, Coal Transportation Fax: 609-524-4991 Fax: 609-524-4540 Ginny.farrow@nrgenergy.com Newmont Mining Corporation Gary E. Kaliher Director Global Logistics 3719 Quail Hollow Drive Boise, ID 83703 Phone: 208-853-7525 Fax: 208-343-0729 Gary.kaliher@newmont.com Leeland Krugerud Group Executive, Development 555 Fifth St. Elko, NV 89801 Phone: 775-778-2502 Fax: 775-778-2513 Lee.krugerud@newmont.com Omaha Public Power District 444 S. 16th St. Mall Omaha, NE 68102 www.oppd.com Ronald Boro Manager, Fossil Fuel Phone: 402-514-1041 Fax: 402-514-1043 rboro@oppd.com

2008 MEMBERSHIP DIRECTORY

Orlando Utilities Commission (OUC) 6113 Pershing Ave. 32822 P.O. Box 3193 Orlando, FL 32802 www.ouc.com Jan Aspuru VP, Power Resoures Phone: 407-649-3944 Fax: 407-384-4067 jaspuru@ouc.com PacifiCorp 1407 W. North Temple Salt Lake City, UT 84116 www.pacificorp.com Rod Roberts Manager Engineering/ Environmental Phone: 801-220-4577 Fax: 801-220-4028 roberts.rod_k@pacificorp. com Dave Smaldone Managing Director Fuel Handling Phone: 801-220-4607 Fax: 801-220-4725 dave.smaldone@ pacificorp.com Platte River Power Authority 2000 East Horsetooth Road Fort Collins, CO 80525 www.prpa.org Jason Frisbie Division Manager, Power Production Phone: 970-229-1705 Fax: 970-229-1700 frisbiej@prpa.org Brian Moeck General Manager Phone: 970-229-5200 Fax: 970-229-5301 Moeckb@prpa.org Portland General Electrric 121 S.W. Salmon St. Portland, OR 97204 www.portlandgeneral.com

Terri Peschka General Manager, Power Operations Phone: 503-464-8304 Fax: 503-464-2605 Terri.Peschka@pgn.com Angeline Chong Manager Fuels Operations Phone: 503-464-7343 Fax: 503-464-2605 Angeline.chong@pgn.com PPL Energy Plus 2 North Ninth St., PL 7 Allentown, PA 18101 www.pplweb.com Ben E. Stothart Manager Coal Supply & Transportation Phone: 610-774-5500 Fax: 610-774-5141 bestothart@pplweb.com Progress Energy 410 S. Wilmington St. Raleigh, NC 27601 www.progress-energy.com Sasha Weintraub Director Coal Phone: 919-546-2400 Fax: 919-546-4721 sasha.weintraub@pgnmail. com Brett Phipps Coal Procurement Phone: 919-546-7750 Fax: 919-546-2590 410 S. Wilmington St. Raleigh, NC 27601 brett.phipps@pgnmail.com Public Service Company of New Mexico 2401 Aztec Road N.E. Albuquerque, NM 87107 www.pnm.com Duane J. Farmer Director Fuels & Wholesale Market Policy Phone: 505-855-6200 Fax: 505-855-6320 dfarmer@pnm.com

Richard Sheppard Senior Vice President Phone: 720-274-3120 ros@rentk.com Salt River Project Mail Station POB001 P.O. Box 52025 Phoenix, AZ 85072-2025 www.srpnet.com Randy Dietrich Manager Fuels Phone: 602-236-4311 Fax: 602-236-4322 rgdietri@srpnet.com Tom Abdali Senior Fuels Analyst Phone: 602-236-4305 Fax: 602-236-4322 txabdali@srpnet.com SCANA Corp. www.scana.com Sarena Burch Senior Vice President 1426 Main St., MC 191 Columbia, SC 29201 Phone: 803-217-9321 Fax: 803-933-8201 sburch@scana.com Gerhard Haimberger General Manager 111 Research Drive Columbia, SC 29203 Phone: 803-217-9548 Fax: 803-217-7740 ghaimberger@scana.corp Southern Company P.O. Box 2641 Birmingham, AL 35242 www.southernco.com Susan Comensky Director Coal Services Phone: 205-257-0298 Fax: 205-257-7795 sbcomens@southernco.com Jeff Wallace Vice Presdient Fuel Services Phone: 205-257-6111 Fax: 205-257-0334 jlwallac@southernco.com

Rentech 1331 17th St., Suite 120 Denver, CO 80439 www.rentechinc.com 9


Tucson Electric Power Company 3950 E. Irvington Road Tucson, AZ 85714 www.tucsonelectric.com David Jacobs Director Fuel and Resource Planning Phone: 520-745-7130 Fax: 520-571-4052 djacobs@tucsonelectric.com

Xcel Energy 1099 18th St., Suite 3000 Denver, CO 80202 www.xcelenergy.com Kathryn Valdez Regional Manager Coal Phone: 303-308-2830 Fax: 303-308-2738 Kathryn.valdez@ xcelenergy.com

Patricia Rodriguez Lead Fuels Analyst Phone: 520-745-3264 Fax: 520-571-4052 prodriguez@ tucsonelectric.com

Energy Traders

We Energies 333 West Everett St. Room A226 Milwaukee, WI 53203 www.we-energies.com

Peter Hernke Senior Coal Trader Phone: 952-984-3329 Fax: 952-249-4043 peter_hernke@cargill.com

Klaus Mylotta Manager, Coal Resources & Emissions Trading Phone: 414-221-2620 Fax: 414-221-2683 klaus.mylott@we-energies.com

Matt Moore Coal Trader Phone: 952-984-4181 Fax: 952-249-4153 m_moore@cargill.com

Westar Energy 818 South Kansas Ave. P.O. Box 889 Topeka, KS 66601 www.wr.com

Cargill, Incorporated 12700 Whitewater Drive, MS 153 Minnetonka, MN 55343

Dynegy Coal Trading & Transportation LLC 1000 Louisiana St. Suite 5800 Houston, TX 77002 www.dynegy.com

Jerry Kroeker Director, Coal Fuel Services Phone: 785-575-1864 Fax: 785-575-6424 Jerry.kroeker@ westarenergy.com

West Boettger Managing Director Phone: 713-767-6082 Fax: 713-767-6695 west.boettger@dynegy.com

Dan Hartzell Manager, Coal Fuel Services Phone: 785-575-1893 Fax: 785-575-1797 Dan.hartzell@ westarenergy.com

Evolution Markets LLC 10 Bank St. White Plains, NY 10606 www.evomarkets.com

WPS Resource Corporation 600 North Adams St. Green Bay, WI 54307-9002 www.wpsr.com Karen J. Kollmann Director, Fossil Fuel Services Phone: 920-433-1301 Fax: 920-433-1011 kkollma@wpsr.com 10

Stephen Nesis Managing Director Phone: 914-323-0250 Fax: 914-328-3701 snesis@evomarkets.com Tom Hiemstra Vice President, Coal Services Phone: 914-323-0250 Fax: 914-328-3701 thiemstra@evomarkets.com

ICAP United, Inc. www.upicoal.com Ian Tapsall Manager Coal Desk 187 Danbury Road Wilton, CT 06897 Phone: 203-762-8493 Fax: 203-761-1025 ian.tapsall@us.icapenergy. com Daniel Vaughn Director, Coal Services 250 Lakewood Drive Suite 5502 Hollister, MO 65672 Phone: 417-336-5582 Fax: 417-336-5583 Daniel.vaughn@ us.icapenergy.com Koch Carbon LLC 20 Greenway Plaza Houston, TX 77046 www.kochind.com Brad Speer Vice President Coal Trading Phone: 713-544-5678 Fax: 713-544-6052 speerb@kochind.com Lehman Brothers 10350 Park Meadows Drive, 1st Floor Littleton, CO 80124 www.lehman.com Matt Levar Commodities Sales Phone: 720-267-6913 matthew.levar@lehman.com Jeff Price VP Commodities Phone: 720-267-6910 jeff.price@lehman.com

SSM Coal Americas, LLC 10500 Little Patuxent Parkway Columbia, MD 21044 www.ssmcoal.com Charles E. Rountree Vice President Phone: 410-910-0640 Fax: 410-910-0630 charles.rountree@ ssmcoal.com Sempra Energy Trading 58 Commerce Road Stamford, CT 06905 Jeff Midden Regional Vice President Phone: 704-439-1128 jmidden@sempratrading.com Stephen Smith Vice President Phone: 203-355-5193 ssmith@sempratrading.com The C. Reiss Coal Company www.kochcarbon.com Fletcher Dennis General Manager Sales & Distribution 2525 Harrodsburg Road Suite 130 Lexington, KY 40504 859-296-2100 Fax: 859-224-0782 dennisf@kochind.com Bill Reiss President P.O. Box 688 Sheboygan, WI 53082-0688 Phone: 920-451-8910 Fax: 920-457-4417

Transportation Companies AEP/Cook Coal Terminal P.O. Box 870 Metropolis, IL 62960 www.aep.com Chuck West Coal Representative Phone: 618-524-1920 Fax: 618-524-1969 cfwest@aep.com AMERICAN COAL COUNCIL


AEP Memco LLP 16090 Swingley Ridge Road Chesterfield, MO63017 www.memcobarge.com Robert M. Blocker Vice President Sales & Logistics Phone: 636-530-2156 Fax: 636-530-4177 bobb@memcobarge.com Mike Brashier Manager, Open Hopper Sales & Logistics Phone: 636-530-2145 Fax: 636-530-4177 mikeb@memcobarge.com James H. Garrett Plant Manager P.O. Box 870 Metropolis, IL 62960 Phone: 636-530-2462 Fax: 636-530-4128 jhgarrett@aep.com American Commercial Lines LLC 1701 E. Market St. Jeffersonville, IN 47130 www.aclines.com Michael P. Ryan Senior VP Sales & Marketing Phone: 812-288-1980 Fax: 812-288-0256 michael.ryan@acbl.net Tom Waters Director, Coal & Energy Phone: 812-288-0542 Fax: 812-288-0256 tewaters@acbl.net

BNSF Railway P.O. Box 961051 Fort Worth, TX 76161-0051 www.bnsf.com Bob Brautovich AVP, Coal Marketing Phone: 817-867-6236 Fax: 817-352-7939 robert.brautovich@bnsf.com Stevan B. Bobb Group Vice President, Coal Marketing Phone: 817-867-6242 Fax: 817-352-7940 stevan.bobb@bnsf.com 2008 MEMBERSHIP DIRECTORY

Crounse Corporation www.crounse.com Robert L. Englert Jr. Manager Maysville Division 200 Commerce St. Maysville, KY 41056 Phone: 606-564-6843 Fax: 606-564-7034 renglert@crounse.com Rob Webb Manager Sales & Contract Administration 2626 Broadway Paducah, KY 42001 Phone: 270-444-9611 Fax: 270-444-9615 rwebb@crounse.com

CSX Transportation 500 Water St., J842 Jacksonville, FL 32202 www.csx.com

East Side River Transportation #6 Executive Woods, Suite 3 Belleville, IL 62226 Jim McEvilly President Phone: 618-277-4481 mcevill@esrtco.com Ingram Barge Company 4400 Harding Road, 1 Belle Meade Nashville, TN 37205-2290 www.ingrambarge.com Tom Vorholt Vice President Dry Cargo Sales Phone: 615-298-8214 Fax: 615-298-8213 vorholtt@ingrambarge.com Joe Johnson Director Utility Sales Phone: 615-298-8255 Fax: 615-298-8213 jjohnson@ingrambarge.com

Chris Jenkins Vice President Coal and Automotive Phone: 904-366-5693 Fax: 904-359-3443 chris_Jenkins@csx.com

Interlake Steamship Company 4199 Kinross Lakes Parkway Richfield, OH 44286 www.interlake-steamship. com

Dennis Damron Vice President Coal Sales & Marketing Phone: 904-359-3380 Fax: 904-359-4890 dennis_Damron@csx.com

John Hopkins Vice President, Marketing Phone: 330-659-1402 Fax: 330-659-1445 jhopkins@ interlake-steamship.com

Dakota, Minnesota & Eastern Railroad Corp. 140 N. Phillips Ave. P.O. Box 1260 Sioux Falls, SD 57101 www.dmerail.com

Kansas City Southern Railway 427 West 12th St. Kansas City, MO 64105 www.kcsr.com

Kevin V. Schieffer President/CEO Phone: 605-782-1206 Fax: 605-782-1299 kvs@dmerailcom Lynn Anderson Vice President, Marketing Phone: 605-782-1234 Fax: 605-782-1299 landerson@cedaramerican. com

Jim Wochner Vice President Sales & Marketing Phone: 816-983-1324 Fax: 816-983-1637 wwochner@kcsouthern.com Darin Selby Director Coal Sales & Marketing Phone: 816-983-1040 Fax: 816-983-1418 427 West 12th St. Kansas City, MO 64105 dselby@kcsouthern.com

KCBX Terminals Company 3259 E. 100th St. Chicago, IL 60617 www.kochind.com Tom Kramer General Manager Phone: 773-978-8317 Fax: 773-375-3153 kramert@kochind.com Kinder Morgan Bulk Terminals, Inc. www.kindermorgan.com Brian Feyereisen 1 Allen Center 500 Dallas St., Suite 1000 Houston, TX 77002 Phone: 713-369-8766 Fax: 713-369-8775 brian_feyereisen@ kindermorgan.com Midwest Energy Resources P.O. Box 787, W. Winters & Ajax Road Superior, WI 54880 www.midwestenergy.com Fred L. Shusterich President Phone: 715-395-3516 Fax: 715-392-9137 fshusterich@ midwestenergy.com Daniel C. McDonald Vice President & Controller Phone: 715-395-3506 Fax: 715-392-9137 dmcdonald@ midwestenergy.com Montana Rail Link, Inc. P.O. Box 16390 Missoula, MT 16390 www.montanarail.com Tom Coston Marketing Manager Phone: 406-523-1410 Fax: 406-523-1639 tcoston@mtrail.com

11


Norfolk Southern Corporation www.nscorp.com Daniel Smith Senior Vice President Energy & Properties 3 Commercial Place Norfolk, VA 23510-9205 Phone: 757-629-2813 Fax: 757-533-4918 danny.smith@nscorp.com Ronald A. (Ron) Listwak Assistant Vice President Utility Coal North 1717 Arch St., 49th Floor Philadelphia, PA 19103 Phone: 215-448-4243 Fax: 215-448-4240 Ron.listwak@nscorp.com Savage Services 6340 South 3000 East Suite 600 Salt Lake City, UT 84121 www.savageservices.com David G. Wolach Executive VP Development Phone: 801-944-6613 Fax: 801-944-6519 davew@savageservices.com Charles O. Monroe Jr. Senior Vice President Coal Services Dev. Phone: 801-944-6629 Fax: 801-944-6519 charliem@savageservices.com SCH Terminal Co., Inc. 2850 N. Main St. Madisonville, KY 42431 Bill Rager Vice President Operations Phone: 270-821-5149, ext. 8131 Fax: 270-825-3158 brager@sch-ces.com Gary Quinn Vice President Utility Services Phone: 423-899-0591 Fax: 423-485-9233 gquinn@sch-ces.com Thunder Bay Terminals Ltd. 95 St. Clair Ave. West Suite 1101 Toronto, Ontario M4V 1N6 CANADA 12

Hilary Goldenberg President Phone: 416-515-7449 Fax: 416-515-1798 hgoldenb@allstream.net TTI Railroad, Inc. 205 Winchester St. Paris, KY 40361 Phone: 859-987-1589 Fax: 859-987-1625 C. Randall “Randy� Clark President crclark@ttirailroad.com Russell S. Rogers Vice President Operations rrogers@ttirailroad.com Union Pacific Railroad Company 1400 Douglas St., Stop 1260 Omaha, NE 68179-1260 www.up.com Doug Glass Vice President & General Manager Phone: 402-544-5678 Fax: 402-544-6772 djglass@up.com Jim Lorenz Senior Business Manager Energy Phone: 402-544-6272 Fax: 402-501-0163 jalorenz@up.com United Maritime Group Brian Miles Corporate Sales 2800 Veterans Blvd. Suite 255 Metairie, LA 70002 Phone: 504-834-2274 Fax: 504-834-2772 brian.miles@united-mar.com Cliff Johnson Vice President Sales 702 N. Franklin St., Plaza 9 Tampa, FL 33602 Phone: 813-209-4258 Fax: 813-273-0248 cliff.johnson@ united-mar.com

Coal Support Services Analytical & Environmental Services ADA Environmental Solutions, Inc. 8100 SouthPark Way, Unit B Littleton, CO 80120 www.adaes.com Michael Durham, Ph.D. President Phone: 303-734-1727 Fax: 303-734-0330 miked@adaes.com Jon Barr Vice President Sales & Marketing Phone: 303-339-8842 Fax: 303-374-0330 jonb@adaes.com Fine Coal Inc. 6043 Triphammer Road Lake Worth, FL 33463 Alberto Gamboa President/Owner Phone: 561-296-2773 finecoal@yahoo.com Golder Associates Inc. 44 Union Blvd., Suite 300 Lakewood, CO 80228 www.golder.com Neil Eurick Business Development Manager Phone: 303-980-0540 Fax: 303-985-2080 neurick@golder.com Bill Thompson Principal Phone: 303-980-0540 Fax: 303-985-2080 bthompson@golder.com

Sampling Associates International P.O. Box 338 Newport News, VA 23607 Paul Reagan President Phone: 757-928-0484 Fax: 757-928-0482 preagan@ samplingassociates.com SGS Minerals Services www.us.sgs.com/minerals Dave Smercina Senior Vice President Energy Minerals 1919 South Highland Ave. Suite 210-B Lombard, IL 60148 Phone: 630-953-9300 Fax: 630-953-9306 dave.smercina@sgs.com Marc Rademacher Vice President Business Development West 4665 Paris St., B-200 Denver, CO 80239-3117 Phone: 303-373-4772 Fax: 303-373-4884 marc.rademacher@sgs.com Standard Laboratories, Inc. 1880 North Loop Drive Casper, WY 82601 www.standardlabs.com Steve Miladinovich Jr. Western Division Manager Phone: 307-234-9957 Fax: 307-234-0013 smiladinovich@ standardlabs.com

Taggart Global, LLC www.taggartglobal.com David Morris Vice President Business Development 2090 Greentree Road Pittsburgh, PA 15220 Phone: 206-720-1899 Fax: 412-429-9801 dmorris@taggl.com AMERICAN COAL COUNCIL


Michael Ferguson Vice President P.O. Box 584 Goose Creek, SC 29445 Phone: 843-569-6315 mferguson@taggl.com

Equipment & Materials Suppliers ALSTOM Power, Performance Projects 2000 Day Hill Road Windsor, CT 06095 www.power.alstom.com Patrick Jennings Business Development Manager Phone: 860-285-4010 Fax: 860-285-4304 pat.jennings@ power.alstom.com David O’Neill General Manager Phone: 860-285-5012 Fax: 860-285-9676 dave.o’neill@power.alstom.com Benetech, Inc. 1851 Albright Road Montgomery, IL 60538 www.benetechusa.com Christopher Blazek Vice President Marketing Phone: 630-844-1300, ext. 214 Fax: 630-844-0064 blazekc@benetechusa.com Ronald Pircon President/CEO Phone: 630-844-1300, ext. 213 Fax: 630-844-0064 pirconr@benetechusa.com FreightCar America Two North Riverside Plaza Suite 1250 Chicago, IL 60606 www.freightcaramerica.com Edward J. Whalen Senior Vice President, Marketing & Sales Phone: 312-928-0850 Fax: 312-928-0890 ewhalen@jacorp.com

2008 MEMBERSHIP DIRECTORY

Fuel Tech, Inc. 512 Kingsland Drive Batavia, IL 60510 www.fueltechnv.com Chris Smyrniotis Vice President Marketing & Technology Phone: 630-845-4461 Fax: 630-845-4501 csmyrniotis@fueltechnv.com Steve Brady Senior VP, Sales & Marketing Phone: 630-845-4420 Fax: 630-845-4501 sbrady@fueltechnv.com

Martin Engineering One Martin Place Neponset, IL 61345 www.martin-eng.com Scott Hutter President/CEO Phone: 309-594-2384 Fax: 309-594-2274 scotth@martin-eng.com James Gassen Vice President Marketing Phone: 309-594-2384, ext. 295 Fax: 309-594-2432 jamesg@martin-eng.com Powerspan 100 International Drive Suite 200 Portsmouth, NH 03801 www.powerspan.com Stephanie Procopis Director of Marketing Phone: 603-570-3000 Fax: 603-570-3100 sprocopis@powerspan.com Frank Alix CEO Phone: 603-570-3000 Fax: 603-570-3100 falix@powerspan.com Pratt & Whitney 3633 136th Pl. S.E. Suite 310 Bellevue, WA 98006 www.shock-system.com

A. Tofa McCormick Business Analyst Phone: 425-278-2448 Fax: 860-622-3847 Andrew.mccormick@ pw.utc.com Jim Hochstein Manager, Sales & Marketing Phone: 425-278-2407 Fax: 860-622-3467

Separation Technologies LLC 101 Hampton Ave. Needham, MA 02494 www.stiash.com Dave Timmerman Vice President Generation Services Phone: 781-972-2302 Fax: 781-455-6518 dtimmerman@ titanamerica.com

Trinity Industries 2525 North Stemmons Fwy. Dallas, TX 75207 www.trinityrail.com Randall Thomure Vice President Product Marketing Phone: 214-589-8405 Fax: 630-571-5724 randy.thomure@trinityrail.com

Financial, Capital & Marketing Associates Boral Material Technologies www.boralmti.com Craig Plunk Vice President Utility Relations 45 N.E. Loop 410, Suite 700 San Antonio, TX 78216 Phone: 210-349-4069, ext. 119 Fax: 210-979-6110 craig.plunk@boral.com

John Scoggan Senior Vice President Utility Services 1343 Canton Road, Suite C Marietta, GA 30066 Phone: 770-423-1883 Fax: 770-423-1613 john.scoggan@boral.com David J. Joseph Company 300 Pike St. Cincinnati, OH 45202 www.djj.com Trey W. Savage Vice President Marketing & Sales Phone: 513-621-8770 Fax: 513-345-4374 tws@djj.com David Redden Phone: 513-419-6055 dmr@djj.com DTE Rail Services 13949 W. Colfax Ave., Bldg. One, Suite 120 Lakewood, CO 80401 www.dtets.com John Pfisterer President Phone: 303-216-4264 Fax: 303- 216-4281 pfistej@dtets.com Nick Keys Director of Sales Phone: 303-216-4269 Fax: 303-216-4282 nkeys@dtets.com Ernst & Young 190 Carondelet Plaza Suite 1300 Clayton, MO 63105 www.ey.com J. Andrew Miller Partner, Mining Industry Leader Phone: 314-290-1205 Fax: 314-290-1815 andy.miller@ey.com

13


GE Rail Services 161 N. Clark St., 7th Floor Chicago, IL 60601 www.gerail.com

PNC Bank N.A. 249 Fifth Ave. Pittsburgh, PA 15222-2707 www.pncbank.com

Black & Veatch 11401 Lamar Ave. Overland Park, KS 66211 www.bv.com

Hellerworx, Inc. 4803 Falstone Ave. Chevy Chase, MD 20815 www.hellerworx.com

James Zoellick Asset Manager Phone: 312-853-5395 Fax: 312-853-5182 james.zoellick@ge.com

Rick Munsick Phone: 412-762-4299

April Anderson-Higgs Fuels Consulting Project Manager Phone: 913-458-9740 Fax: 913-458-2934 anderson-higgsaa@bv.com

Jamie Heller President Phone: 301-654-1980 Fax: 301-718-1878 jamie@hellerworx.com

Kevin Jennison Fuels Consulting Service Leader Phone: 913-458-9762 Fax: 913-458-2122 jennisonkd@bv.com

Hill & Associates, A Wood Mackenzie Company P.O. Box 3475 Annapolis, MD 21403 www.hillandassoc.com

Global Energy Decisions www.globalenergy.com

Jeffery A. Watkins President Phone: 410-263-6616 Fax: 410-268-0923 jeff.watkins@woodmac.com

Headwaters Incorporated 10653 S. Riverfront Parkway Suite 300 South Jordan, UT 84095 www.headwaters.com Ken Frailey President, Headwaters Energy Services Phone: 801-984-9400 Fax: 801-984-9410 kfrailey@headwaters.com Linda Rathbun Director, Marketing Strategies Phone: 801-984-3793 Fax: 801-984-9410 linda.rathbun@ headwaters.com Helm Financial Corporation 505 Sansome St., Suite 1800 San Francisco, CA 94111 www.hlmx.com Ed Garvey Senior Vice President Phone: 415-229-1604 Fax: 415-229-1605 egarvey@hlmx.com Mineral Resource Technologies, A CEMEX Co. 2700 Research Forest Drive Suite 150 The Woodlands, TX 77381 www.mrtus.com Mike Silvertooth Business Development Manager Phone: 281-362-1060 Fax: 281-362-1809 msilvertooth@mrtus.com

14

PricewaterhouseCoopers LLP 1850 N. Central Ave., #700 Phoenix, AZ 85004-4545 www.pwc.com Steve Ralbovsky Phone: 602-364-8193 Fax: 602-365-8005 steve.ralbovsky@us.pwc.com Railroad Financial Corporation 676 N. Michigan Ave. Suite 2800 Chicago, IL 60611 Anthony Kruglinski President Phone: 312-222-1383 Fax: 312-222-1470 tkruglinski@railfin.com David Nahass Senior Vice President Phone: 312-222-1383 Fax: 312-222-1470 dnahass@railfin.com

Technical & Economic Consultants Argus Media, Inc. 1012 Fourteenth St. N.W., Suite 1500 Washington, DC 20005 www.argusonline.com C. Miles Weigel Senior Vice President Phone: 484-431-4208 Fax: 202-872-8045 mweigel@ argusmediagroup.com

Gary Hunt President 2379 Gateway Oaks Drive Suite 200 Sacramento, CA 95833 Phone: 916-609-7750 Fax: 916-569-0999 ghunt@globalenergy.com Hans Daniels Manager Coal Advisory Services 1495 Canyon Blvd. Suite 100 Boulder, CO 80302 Phone: 720-240-5544 Fax: 720-240-5501 hdaniels@globalenergy.com Hazen Research, Inc. 4601 Indiana St. Golden, CO 80403 www.hazenusa.com Charles W. (Rick) Kenney Vice President Phone: 303-279-4501 Fax: 303-278-1528 kenneycw@hazenusa.com Robert A. Reeves Senior Project Manager Phone: 303-279-4501 Fax: 303-278-1528 reevesra@hazenusa.com

ICF Consulting 9300 Lee Highway Fairfax, VA 22031 www.icfconsulting.com John Blaney Managing Director Phone: 703-934-3367 Fax: 703-934-3968 jblaney@icfconsulting.com John T. Boyd Company www.jtboyd.com Bill Wolf Senior Analyst 1500 Corporate Drive Suite 100 Canonsburg, PA 15317 Phone: 724-873-4400 Fax: 724-873-4401 w-wolf@jtboyd.com Richard Bate Vice President Phone: 303-293-8988 Fax: 303-293-2232 999 18th St., 1400 S. Tower Denver Pl. Denver, CO80202 r-bate@jtboyd.com

AMERICAN COAL COUNCIL


Platts 3333 Walnut St. Boulder, CO 80301 www.platts.com

Marston & Marston, Inc. www.marston.com Kip Williams Vice President & Senior Geological Consultant 3300 Nacogdoches Road Suite 115 San Antonio, TX 78217 Phone: 210-655-1185 Fax: 210-655-0818 kwilliams@marston.com Bill Meister Senior Vice President & Senior Mining Consultant 13515 Barrett Parkway Drive, Suite 260 St. Louis, MO 63021 Phone: 314-984-8800 Fax: 314-984-8770 bmeister@marston.com The McCloskey Group Unit 6, Rotherbrook Court, Bedford Road Petersfield, UK GU32 3QG Hampshire www.mccloskeycoal.com Tony Tabner Sales & Marketing Manager Phone: +44 0 1730 265095 Fax: +44 0 1730 260044 Tony.tebner@ mccloskeycoal.com Christian Griffiths Sales Manager Phone: +44 0 1730 265095 Fax: +44 0 1730 260044 Christian.griffiths@ mccloskeycoal.com McGuireWoods LLP www.mcguirewoods.com Leonard J. Marsico Partner 625 Liberty Ave., 2nd Floor Pittsburgh, PA 15222 Phone: 412-667-7987 Fax: 412-667-7956 lmarsico@mcguirewoods.com Leslie A. Grandis Partner 901 E. Cary St. Richmond, VA 23219 Phone: 804-775-4322 Fax: 804-698-2069 lgrandis@mcguirewoods.com

2008 MEMBERSHIP DIRECTORY

Mitsui Rail Capital, LLC 5215 Old Orchard Road Suite 505 Skokie, IL 60077 www.mrc-rail.com Yasushi Imai Phone: 847-581-3834 Fax: 847-581-3831 yimai@mrc-rail.com Norwest Corporation 136 East South Temple 12th Floor Salt Lake City, UT 84111 www.norwestcorp.com Kirk Weber Vice President & General Manager Phone: 801-539-0044 Fax: 801-539-0055 kweber@norwestcorp.com Pace Global Energy Services 4401 Fair Lakes Court Suite 400 Fairfax, VA 22033 www.paceglobal.com Mark Bossard Director Solid Fuels Services Phone: 703-227-8768 Fax: 703-818-9108 bossardm@paceglobal.com Gary Vincinus Vice President Phone: 703-227-8802 Fax: 703-818-9100 vicinusg@paceglobal.com Pincock, Allen & Holt 165 S. Union Blvd. Suite 950 Lakewood, CO 80228 Raja P. Upadhyay President Phone: 303-986-6950 Fax: 303-987-8907 raja.upadhyay@pincock.com

Terry Walsh Phone: 720-548-5776 Fax: 720-548-5001 terry_walsh@platts.com

Storm Technologies, Inc. P.O. Box 429 Albemarle, NC 28002 www.stormeng.com

Mike McKevitt Phone: 720-548-5573 Fax: 720-548-5001 mike_mckevitt@platts.com

Richard F. Storm President/CEO Phone: 704-983-2040 Fax: 704-982-9657

Resource Technologies Corp. P.O. Box 242 State College, PA 16804-0242 www.resourcetec.com Jeffrey Kern President Phone: 814-237-4009 Fax: 814-237-1769 jrkern@resourcetec.com David Falkenstern Senior Geotechnical Analyst Phone: 814-237-4009 Fax: 814-237-1769 davemf@resourcetec.com

Roberts & Schaefer Company 10150 Centennial Parkway #400 Sandy, UT 84070 www.r-s.com Steve Cattani Business Development Manager Phone: 801-984-0900 Fax: 801-984-0909 stevec@eni.com

rfstormsea@aol.com Troutman Sanders LLP 401 Ninth St. N.W. Suite 1000 Washington, DC 20004-2134 Sandra L. Brown Phone: 202-274-2959 Fax: 202-654-5603 sandra.brown@ troutmansanders.com URS Corporation www.urscorp.com George Warriner Power Business Sector Manager 9400 Amberglen Blvd. Austin, TX 78729 Phone: 512-419-5516 Fax: 512-419-6004 george_warriner@urscorp.com Jerry Hollinden Senior Vice President Waterfront Plaza One 325 W. Main, Suite 1200 Louisville, KY 40202 Phone: 502-217-1516 Fax: 502-569-2304 jerry_hollinden@urscorp.com

Brian Petersen Senior Vice President & General Manager Phone: 801-364-0900 Fax: 801-364-0909 brianp@eni.com

15


Contributing Supporters

American Coal Ash Association 15200 E. Girard Ave. Suite 3050 Aurora, CO 80013-3955 www.acaa-usa.org David Goss Executive Director Phone: 720-870-7897 Fax: 720-870-7889 dcgoss@acaa-usa.org American Coalition for Clean Coal Electricity 1110 Innsbrook Lane Buffalo, MN 555313 www.cleancoalusa.org Mark Ourada Vice President External Affairs Phone: 703-302-1213 Fax: 703-302-1243 mourada@cleancoalusa.org The Coal Association of Canada 100, 205 Ninth Ave. S.E. Calgary, AB T2G 0R3 CANADA www.coal.ca Allen Wright Executive Director Phone: 403-262-1544 Fax: 403-265-7604 wright@coal.ca George White Chairman of the Board of Directors Phone: 416-935-2479 gwhite@sherritt.com

Coal Utilization Research Council 1050 Thomas Jefferson St. N.W. Washington, DC 20007 www.coal.org Ben Yamagata Executive Director Phone: 202-298-1857 Fax: 202-338-2416 bny@vnf.com Shannon Angielski Associate Director Phone: 202-298-1825 Fax: 202-338-2416 University of Kentucky – Center for Applied Energy Research 2540 Research Park Drive Lexington, KY 40511-8410 www.caer.uky.edu James C. Hower Senior Scientist Phone: 859-257-0261 Fax: 859-257-0360 hower@caer.uky.edu University of North Dakota, Energy & Environmental Research Center 15 North 23rd St. Stop 9018 Grand Forks, ND 58202-9018 www.undeerc.org/carrc

West Virginia University Nat’l. Research Center for Coal & Energy P.O. Box 6064 Evansdale Drive Morgantown, WV 26506-6064 Richard A. Bajura Director Phone: 304-293-2867 Fax: 304-293-3749 bajura@wvu.edu Western Region Ash Group (WRAG) www.wrashg.org Fred Gustin Kansas City Power & Light P.O. Box 418679 Kansas City, MO 64141-9679 Phone: 816-556-2108 fred.gustin@kcpl.com Western Research Institute 365 North Ninth St. Laramie, WY 82072 www.westernresearch.org Dr. Alan Bland VP Waste & Environmental Mgt. Phone: 307-721-2386 Fax: 307-721-2256 abland@uwyo.edu

ACC Staff 1101 Pennsylvania Ave. N.W. Suite 600 Washington, DC 20004 Phone: 202-756-4540 Fax: 202-756-7323 www.americancoalcouncil.org info@americancoalcouncil.org CEO Janet Gellici, CAE jgellici@ americancoalcouncil.org Communications Director Jason Hayes jhayes@ americancoalcouncil.org Conference Director Teresa Coffer tcoffer@ americancoalcouncil.org Executive Assistant Michele Rubin mrubin@ americancoalcouncil.org Legal Counsel Bill Walters Kelly Garnsey Hubbell + Lass LLC 1441 18th St., Suite 300 Denver, CO 80202 Phone: 303-296-9412 Fax: 303-293-8705 bwalters@kghllaw.com

Debra Pflughoeft-Hassett Program Manager Coal Ash Research Phone: 701-777-5261 Fax: 701-777-5181 dphassett@undeerc.org

Index to Advertisers Arch Coal, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inside Front Cover

LECO Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Foundation Coal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Inside Back Cover

Separation Technologies LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

FreightCar America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Outside Back Cover

16

AMERICAN COAL COUNCIL


Corporation

An investment in America’s e An investment Anin America’s investment energy utureenergy in America’s uture

energy future


Coal Liquids in America’s Energy Future By Kate Perez, DKRW Advanced Fuels

N

ever has America needed clean coal liquid transport fuels more than in today’s global energy environment. Clean coal needs to be an integral part of our energy future. Using proven gasification and liquefaction technology, we can produce a clear and clean liquid transport fuel from America’s most abundant fossil fuel reserves with a relatively low carbon footprint. This fuel can be supplied into the existing transport fuel infrastructure at prices that are competitive with crude oil based fuels. Market Forces are Driving America to Coal Liquids. The industrial revolution in China and India is pushing up energy demand. Conventional oil reserves are getting more costly to produce and more difficult to secure. These factors are helping drive oil prices higher. World oil demand is projected to increase by over 30 million barrels per day by 2030, from our current usage. At the same time, oil prices are expected to move toward $120 per barrel as world supplies tighten. The United States is currently importing just under 14 million barrels of oil per day. At $100 per barrel this is costing the country $1.4 billion a day – a half a trillion dollars per year. This massive outflow of cash is contributing to the U.S. trade deficit and weakening the dollar. It also provides direct financial support to economies of many countries that are not friendly toward the United States. Coal is our largest fossil fuel reserve; it can help reduce our economic and national security vulnerability from oil import shocks. At 270 billion tons, the United States has 26 percent of the world’s coal reserves. At the current U.S. demand of 1.1 billion tons per year, the expected life of our reserves is 240 years. Those coal reserves would enable the United States to displace a portion of our oil imports and substantially reduce the geopolitical volatility of U.S. oil supplies. First U.S. Commercial Scale Coal-toLiquids Facility. DKRW Advanced Fuels american coal council

The United States is currently importing just under 14 million barrels of oil per day. At $100 per barrel this is costing the country $1.4 billion a day. is developing a coal-to-liquids (CTL) facility in Carbon County, Wyo. The Medicine Bow Fuel & Power project would convert Carbon Basin bituminous coal into over 18,000 barrels per day of low sulfur gasoline when it comes on line in 2013. Key licensing agreements are in place and the company is working toward final permit approval so that site work can begin later this year. Medicine Bow has optioned 180 million tons of coal from Arch Coal’s Saddleback Hills mine and Arch will operate the longwall, mine-mouth operation. Starting with 8,000 tons of coal per day (11,725 Btu/ lb, low moisture) the facility will incorporate General Electric’s (GE) patented coal gasification technology to produce a raw syngas from the coal. The GE technology has over 50 years of development and operational experience, and there are over 60 similar units running worldwide. The syngas is cleaned up and byproducts such as CO2 are removed. The cleaned syngas is conditioned and modified in several chemical processes through reactor vessels loaded with various catalysts and

then converted to methanol. And, using Exxon Mobil’s proprietary technology, the facility will convert the methanol to gasoline (MTG). The MTG technology was developed in the 1980s and produced commercial scale volumes in New Zealand. Low Carbon Footprint. Considering that Medicine Bow can capture the majority of the CO2 in the conversion process, its environmental profile is very competitive. A study by the U.S. National Energy Laboratory shows that with sequestration, a CTL facility can produce liquid transport fuels with a carbon footprint smaller than that of refined petroleum products imported from Saudi Arabia, the Canadian tar sands and Venezuelan syncrude. Further, a recent analysis published in Science magazine indicated that CTL could have a much lower carbon footprint than ethanol, which has enjoyed tremendous support and subsidies. The CO2 removed from the process will be used in the growing Wyoming enhanced oil recovery (EOR) industry. According to the Wyoming Enhanced Oil Recovery 31


Institute, the state has eight billion barrels of oil recoverable via EOR that could require 48 tcf of CO2. DKRW Advanced Fuels is negotiating with major producers for this opportunity and certainly there are needs elsewhere in the U.S. oil industry, as this is a proven technology for production of certain reserves. The gasoline produced by the MTG technology is very high quality and contains only trace amounts of sulfur. Medicine Bow gasoline will be significantly better than crude oil derived fuels because the CTL process makes it possible to remove contaminates that produce NOx, SOx and volatile organic compounds from the fuel. Strong Project Economics. As owners of the coal source, the Medicine Bow Fuels & Power project is not at the mercy of market fluctuations. It also has a reserve that can carry the project for decades and still accommodate future expansions of up to a total of 40,000 bpd of output. Our gasoline product can be shipped out on the existing pipeline and/or rail infrastructure without vast new investment, and markets for refined products remain strong. The sale of CO2 and other byproducts such

as sulfur and slag support our strong economic profile. The opportunity to convert coal to transportation fuels has been around for quite some time, but the relatively balanced cost of crude precluded any significant development of the technology. A variety of opinions exist as to what cost crude must be in order for CTL to be a viable alternative. Our own modeling suggests that at a WTI equivalent in the high $20s/bbl, the Medicine Bow plant would break even. Increasing costs for petroleum, coupled with the more difficult job that major oil companies are having with replacing their reserves, help make this the right time to fully develop alternative conversion technologies such as CTL. CTL is Critical. This type of conversion will not displace huge amounts of petroleum-based gasoline, but it can be a critical part of the U.S. energy future. The infusion of CTL into the energy mix can help stabilize oil prices and play a pivotal role in our energy and national security. Significantly, we can capitalize on this opportunity with one of America’s most abundant resources, using proven technology and existing infra-

structure in an environmentally responsible manner to produce a clean, market-ready transportation fuel at a competitive price. DKRW Advanced Fuels is a development-stage hydrocarbon conversion company that is focused on the commercial development, construction, ownership and operation of facilities designed to convert lower-value hydrocarbons into products that traditionally have been produced by crude oil using commercially available technologies. By using proven coal gasification and liquefaction technologies, they aim to convert more abundant resources, primarily solid hydrocarbons such as coal, into competitively priced products. In addition to the Medicine Bow project, they are also pursuing projects in other parts of the United States and exploring international opportunities. DKRW Advanced Fuels is a subsidiary of DKRW Energy LLC. Arch Coal, the second largest coal producer in the United States, is also a shareholder in Advanced Fuels.  u Kate Perez is the director of communications & publications at DKRW Fuels (www.dkrwadvancedfuels.com).

CONSOL Energy Inc., a high-Btu bituminous coal and coal bed methane company, is a member of the Standard & Poor’s 500 Equity Index and has annual revenues of $3.7 billion. It has 20 bituminous coal mining complexes in six states and reports proven and probable coal reserves of 4.5 billion tons. In addition, the company is a majority shareholder in one of the largest U.S. producers of coalbed methane gas, CNX Gas Corporation. CONSOL Energy was named one of America’s most admired companies in 2005 by Fortune magazine. Additional information about the company can be found at its web site: www.consolenergy.com.

CONSOL Energy Inc.

Consol Plaza, 1800 Washington Road, Pittsburgh, PA 15241 412/831-4000 : www.consolenergy.com 32

american coal council


Reducing Greenhouse Gas Emissions Through Coal Ash Utilization: New task team preparing industry for a cap and trade future

By John Ward, 2006 ACC President and ACAA Government Relations Committee Chair

A

s newspaper headlines about climate change increasingly focus on technologies for carbon capture and storage, the coal industry is already growing another strategy for reducing global carbon dioxide emissions by millions of tons each year. Coal combustion products such as fly ash are created when coal is consumed to generate electricity. These “CCPs” can be used in several ways to reduce or offset CO2 emissions from other processes. For instance, fly ash can be used to make concrete that is stronger and more durable than concrete made with cement alone. In the process, the amount of cement needed is reduced – creating substantial greenhouse gas emissions reductions. In October 2007, former Vice President Al Gore received the Nobel Peace Prize for his role in bringing the issue of climate change to the top of the political agenda in the United States and internationally. According to the Pew Center on Global Climate Change, at least 36 states have begun or completed climate action plans

american coal council

Former Vice President Al Gore Photo by the World Resources Institute

and five regional initiatives on climate change are under way. The United States Congress is also beginning to move forward more aggressively toward the creation of a national regulatory program for reducing greenhouse gas emissions.

One likely feature of a national regulatory program may be a cap and trade system for greenhouse gas emissions. Under a cap and trade system, the government sets an overall limit on emissions, but allows companies that can easily reduce emissions to sell credits to other companies for which reductions would be more difficult. This flexible system encourages markets to find the most cost-effective ways to reduce emissions. Cap and trade systems have worked well in the United States for reducing emissions of pollutants such as sulfur dioxide and nitrogen oxide. Coal combustion product utilization could make a significant difference in helping the United States to reduce greenhouse gas emissions. The reductions could come in a couple of ways. First, the use of coal fly ash in concrete displaces carbon dioxide emissions from cement manufacturing. Generally speaking, a ton of fly ash can be used to replace a ton of cement in making concrete. By eliminating the need to manufacture that ton of cement, a ton of carbon dioxide

33


Coal combustion product utilization could make a significant difference in helping the United States to reduce greenhouse gas emissions. emissions are avoided.1 Last year in the United States, we used about 15 million tons of fly ash for that purpose. That’s like eliminating the carbon dioxide emissions of 2.5 million cars for the entire year. Another opportunity for coal combustion products is in the agricultural sector. For instance, synthetic gypsum from power plant scrubbers can be used as a soil amendment to enable no-till farming – another key greenhouse gas reduction strategy. Acceptance of these strategies by regulatory authorities is not assured, however. If a cap and trade system is enacted in the United States, projects seeking to participate may need to meet strict standards for scientific justification, project documentation, third party monitoring and 1

verification, and other considerations. It is too early to know exactly what legislative and regulatory requirements will be established in the United States. To prepare for this potential opportunity, the American Coal Ash Association Government Relations Committee has formed a Greenhouse Gas Emissions Trading Task Team. The team includes representatives of electric utilities, coal combustion products marketers, concrete producers, cement manufacturers, engineering companies, and academia. The ultimate goal of this team is to prepare the coal combustion products industry for the emergence of greenhouse gas regulations in the United States. If the industry is properly prepared, those regulations could provide

a tremendous boost to increasing utilization of an under-utilized resource. And more aggressive utilization of this resource could go a long way toward helping the United States to achieve its climate change goals.  u Participation in the ACAA Greenhouse Gas Emissions Trading Task Team is open to all American Coal Ash Association members. For more information contact John Ward at jward@headwaters.com or Dave Goss at dcgoss@acaa-usa.org John N. Ward is the former vice president, Headwaters Incorporated (www.headwaters. com). John was also the 2006 president of the American Coal Council and is the ACAA government relations committee chair.

Editor’s note: World cement production numbers indicate that between 0.8 to 1.25 tons of CO2 are produced in the production of each ton of Portland cement.

Global expertise in the oil, gas, power, and coal sectors through a unique range of research products and consulting services www.woodmac.com

Australia - Canada - China - India - Japan - Malaysia - Russia - Singapore - South Africa - United Arab Emirates - United Kingdom - United States

34

american coal council

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ENERGY FOR THE 21ST CENTURY

Flip a switch.

Play a tune.

Warm your home.

Fuel your car.

Yeah... coal can do that. Today, coal fuels more than 50% of U.S. electricity. America has the largest coal reserves in the world... and greater use of this clean and affordable fuel can reduce our reliance on foreign oil and liquefied natural gas. Peabody Energy (NYSE: BTU) is the world’s largest provider of coal to fuel 21st Century energy solutions. Peabody Energy is proud to be a member of the American Coal Council. Co alC anD o That.com

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Investing in the Future of Coal

BNSF Railway is proud to join with the American Coal Council in working to advance the development and utilization of coal as an economic, abundant and environmentally sound fuel source. Growth depends in part on transportation capacity, and BNSF has a proven track record of leadership in providing that capacity. Over the past three years, BNSF has committed more than $1.22 billion for coal capacity expansion. The 100 miles of new railroad we built between Gillette and Orin, Wyo., in the 1970s helped develop what has become the nation’s most important domestic energy source for generating electricity. That 100-mile line has grown to almost 400 miles of track, and the expansion continues. As our nation’s demand for an environmentally friendly, domestic energy source continues to grow, BNSF is delivering more coal than ever. BNSF has set annual coal tonnage records for each of the past four years. With our investments in capacity, and with the expertise of the BNSF team, we’re prepared to handle even more American coal in the future.

www.bnsf.com


Regulatory Firestorm Looms By Maureen Martin, The Heartland Institute

“It is an embarrassment to science that hype has replaced reason in the global debate over so important an issue” – Dr. S. Fred Singer

A

s environmentalists ratchet up their campaign of increasing taxes and regulation in the guise of global warming mitigation, their scare tactics are increasingly being exposed – and opposed. A recent example comes from an Indian reservation in Bonanza, Utah, in the east central part of the state. The U.S. Environmental Protection Agency’s (EPA) regional office last year issued a federal Clean Air Act permit to the Deseret Power Electric Cooperative located there. Review of the EPA’s issuance of such permits is supposed to be narrow, but in January 2008, the Sierra Club objected because the permit does not contain limits on carbon dioxide emissions. Joined by a who’s who of environmental groups and state attorneys general in what is obviously an orchestrated attack on the Deseret plant, they argued to an appeals board within EPA that carbon dioxide limits are american coal council

required because carbon dioxide is an “air pollutant” that the U.S. Supreme Court says EPA can regulate. The court ruled last year that carbon dioxide is an “air pollutant.” It had no choice but to do so, because the legal definition is so broad: “any physical, chemical, [or] biological ... substance which is emitted into or otherwise enters the ambient air.” Under this definition, EPA could regulate almost anything, including perfume, aftershave, and the scent of lilacs wafting through your backyard. For that reason, the Clean Air Act limits EPA’s regulatory powers to “air pollutants” that “may reasonably be anticipated to endanger public health or welfare” as determined by the EPA administrator. EPA is now considering whether carbon dioxide presents such risks. Until now, EPA has regulated only air emissions that are inherently dangerous, such as carbon monoxide, ozone, and lead. But carbon dioxide

is different. It is emitted not only by industry, but also every time a human exhales or pops open a can of soda. It is emitted by every building heated with natural gas and by every gas range in America. If the Deseret plant is required to control carbon dioxide emissions, so will hundreds of thousands of other sources, according to the Competitive Enterprise Institute (CEI) – and 13 other groups that filed a brief in the Deseret case. These include apartment buildings, hotels, enclosed shopping malls, colleges, hospitals, large churches, domed sports stadiums, restaurants, soda manufacturers, bakers, breweries, and wineries, to name just a few. A decision that Deseret must regulate its carbon dioxide emissions would touch off a regulatory firestorm that “would reverberate across the economy,” CEI and the others noted. The environmentalists involved in the case seek to skip over these realities. Instead 37


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of going toe-to-toe with skeptics over the causes of climate change and whether it is manmade, and without grappling with the vast regulatory consequences, they simply argue that extreme measures are needed or else life as we know it will end. The Heartland Institute argued to the board in Deseret: “Heartland trusts the EAB will readily recognize that any rulemaking conducted by it on this massive and immensely complicated subject, under the guise of a permit appeal, would be unconstitutional, illegal, and void. It would take place without a proper administrative record, in the wrong forum, without proper notice to the parties affected – which number in the hundreds of thousands – and without providing those parties with an opportunity to be heard. And no party will know the terms of any CO2 rule that might emerge from this void until afterwards. By then it will be too late. Any such ‘rulemaking’ would make a mockery of Due Process.� Heartland also submitted an abundance of scientific research establishing the planet is beginning to cool and that evidence of any current warming being manmade is “very weak,� as demonstrated by the eminent climate physicist Dr. S. Fred Singer and 22 other climate change experts in the March 2008 report “Nature, Not Human Activity, Rules the Climate,� published by The Heartland Institute for the Nongovernmental International Panel on Climate Change. The report debunks the use of computerized climate models to predict future climate trends – the lynchpin of global warming “alarmism� – which even alarmists admit are unreliable. Even more troubling are the other questions raised in the report, including the shoddy way in which planetary temperatures have been measured. Dr. Singer perhaps said it best: “It is regrettable that the public debate over climate change, fueled by the errors and exaggerations contained in the reports of the IPCC, has strayed so far from scientific truth. It is an embarrassment to science that hype has replaced reason in the global debate over so important an issue.� The Deseret case proves just how important this issue really is.  u Maureen Martin is senior fellow for legal affairs at The Heartland Institute (www.heartland.org). american coal council


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In late 2007, we began publishing book reviews to the ACC Web site as a means of promoting a discussion on energy and environmental policy and looking into what others are saying about these issues. We have included a few of these reviews in this edition of American Coal magazine. We invite you to read through these reviews here and to look for new reviews being published regularly on the ACC Web site. We also invite readers to contact us and suggest other titles that you might like us to review.

Re-examining “Consensus” and the Drivers of Climate Change: Well researched review of the science questions humanity’s role Review of: Unstoppable Global Warming Every 1,500 Years (updated & expanded edition) By S. Fred Singer and Dennis T. Avery Rowman & Littlefield, 2008 Review by Jason Hayes, M.E.Des., Communications Director, American Coal Council

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few years back, I was asked to give a few presentations on the science of climate change. So I discussed the claims that a broad scientific consensus existed on the causes of global climate change. Proponents of that theory argued that science had determined human use of fossil fuels was releasing CO2 into the atmosphere, thereby, causing unprecedented and potentially dangerous warming. This theory is often called anthropogenic global warming (AGW). I suggested that the average person could be excused for thinking that AGW was the cause for our changing climate. Governments, media and NGOs all swore that was the case and since then, their rhetoric has become even more pervasive. They also informed us that so-called skeptics who questioned their theory were isolated loners, resident on the outermost fringes of the discussion. They have also created and presented expensive and prestigious awards for their frightening epics on AGW that depict the dangerous outcomes of using of fossil fuels. Some have even charged skeptics as being morally akin to holocaust deniers, actually borrowing and reworking the term into “climate denier.” It is their influence that has brought on a call for the immediate enacting of carbon-control legislation that is making its way through governments around the world.

american coal council

Given those circumstances, no one could still seriously consider questioning the science. What would be the point? Even if the science weren’t settled when I gave my presentations a few years ago, it has to be now, so raising the question again would be a waste of time, right? The authors of a newly released book would tell you that thought is wrong. In their just-released, updated and expanded edition of Unstoppable Global Warming Every 1,500 Years, Dr. S. Fred Singer and Dennis T. Avery enthusiastically dig into the foundations of the claimed scientific consensus on AGW. Singer and Avery fill their book with citations to hundreds of peer-reviewed, published research papers from respected scientific journals. Ironically, they have used the research of the climate scientists that make up the alleged “consensus.” In this activity, Singer and Avery have performed an important public service. They have empowered the average citizen – granting him/her access into the complex and often inhospitable clique of climate science. This is the same person who is expected to quietly accept the “consensus view” because (s)he is not the professional; the same person who will be expected to pay the bills for whatever AGW policy that is finally enacted. A reasonable person can, after reading this book, ask why people claim that the 41


“science is settled” and why we are rushing to implement expensive carbon control legislation if thousands of published, peerreviewed studies have contradicted the claims of a scientific consensus on AGW.

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hat sets their work apart is

that they move forward to question whether the warming is due to human activity, rather than simply assuming it is.

Answering three big questions In Unstoppable Global Warming, Singer and Avery look into a vast ocean of scientific literature to answer three key issues. First, what is causing the measured warming of the earth? Second, what is the likely outcome of the warming? Third, what are the potential costs of addressing the warming and do the benefits of suggested climate change mitigation strategies justify the expenses? It is worthwhile to note first that the authors do not challenge the idea of global warming. They state early in the book, “ … the Earth has recently been warming. This is beyond doubt.” What sets their work apart is that they move forward to question whether the warming is due to human activity, rather than simply assuming it is. The title of the book, in part, reveals their contention that global warming is caused by naturally occurring, 1,500-year DansgaardOeschger (DO) cycles. DO cycles were first noticed in ice cores extracted from the Greenland ice sheet in 1983. By measuring the ratios of oxygen 18-isotopes and oxygen 16-isotopes, Denmark’s Willi Dansgaard and Switzerland’s Hans Oeschger outlined a detailed temperature record for the Greenland area. That record showed a distinct 1,500-year-long cycle of warming and cooling had occurred several times over the past 250,000 years. Other researchers found similar warming and cooling patterns in the Antarctic’s Vostok Glacier, the Sargasso Sea, and the upwelling region off the coast of West Africa. In fact, DO cycles have since been tracked all around the world – in Greenland, Africa,

North America, the North Atlantic, North Pacific, the Philippines, and Europe. Singer and Avery, as well as many other climate scientists, point to this natural 1,500-year cycle as a primary driver in global climate throughout world history. They don’t stop there, however; they also focus on the role of the sun. Where much of the discussion around climate change seems to ignore the sun’s input into the equation, research indicates that the sun is bathing the earth in varying levels of solar rays, also known as the “solar wind.” Solar winds act as a shield for other cosmic rays that create low clouds when they come through the earth’s atmosphere. Those clouds reflect visible-range heat away from the earth, leading to increased cooling. Stronger solar activity means more solar winds, fewer cosmic rays, fewer low clouds, increased solar radiation, and heating of the earth’s surface. One study, published in Geosciences Canada supported this theory and stated, “empirical observation on all time scales point to celestial phenomena as the principal driver of climate ... with greenhouse gases acting only as potential amplifiers.” The study author, Jan Veizer – a recognized expert in isotope geochemistry – continued the celestial driver theory by describing how the carbon cycle actually piggybacks on other cycles. Later in Unstoppable Global Warming, Singer and Avery expand on this assertion by showing that carbon dioxide levels actually lag behind temperature changes by as much as 800 years. This means that global warming produces more CO2, not the other way around. The book reviews numerous other important theories and research, such as the highly controversial “hockey stick” graph, widely promoted as a foundational piece of evidence for the 2001 Intergovernmental Panel

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on Climate Change (IPCC) science report. The graph and research that produced it have been the focus of a multi-year statistical battle, as well as charges of flawed calculations and serious data defects. Singer and Avery also investigate the reliability of Global Climate Models (GCM) versus realworld research and empirical data. They look at the controversy surrounding urban heat islands and how they have impacted groundbased temperature readings. Compared with ground-based readings, weather balloon and satellite records show remarkably stable ground and atmospheric temperatures. Singer and Avery wrap up this discussion by considering the difficulties that GCMs have with modeling atmospheric moisture and clouds. Having presented a defensible basis for the earth’s changing climate, the authors turn their attention to answering what the likely outcome of the warming will be. One example – sea level rise – will suffice to show how they have handled this and other controversies. The concern over rising sea levels has become a lightning rod issue in the climate change debate. Stories of 20-foot increases and a flooded Manhattan have been splashed around the news. Singer and Avery, however, look to published research to determine the real potential for such drastic outcomes. They report IPCC findings of a maximum potential sea level rise of 23.2 inches by 2100, and then look to data from the International Union for Quaternary Research (INQUA), a group founded for the purpose of studying sea level change. INQUA and IPCC differ markedly. Where one claims two feet is possible, the other suggests that expected “sea level rise is ‘10 cm – plus or minus 10 cm.’ ” One of the most visible (potential) victims of sea level rise – the tiny Pacific Islands nation of Tuvalu – is also considered. Tuvalu has been highlighted by media, NGOs, and politicians, as facing imminent inundation because of the developed world’s fossil-fuel use. Avery and Singer describe however, that “satellite radars found that Tuvalu’s sea levels have fallen four inches over a decade.” They close out this section on fears about global warming by reviewing a variety of published research that questions reports of coming famine, drought, massive species extinction, extreme weather events, and increasing human mortality. Next they consider the costs of addressing AGW. If global warming is as Avery american coal council

and Singer contend – a 1,500-year, natural, moderate, worldwide phenomena – reasonable readers will ask how spending billions and hampering our global economy in an attempt to stop CO2 production, will aid in adapting to something we cannot change? On the other hand, if AGW proceeds with the media-presented cause – primarily human activity – they will ask if spending billions and hampering our global economy will be sufficient to stop the warming. Any discussion of attempts to address AGW cannot ignore the centerpiece treaty

aimed at stopping climate change – the Kyoto Protocol. Designed as only a “first step” in reducing global greenhouse gas (GHG) emissions, the Kyoto Protocol required developed countries to reduce their CO2 emissions by 5.2 percent below 1990 levels by the year 2012. Developing nations were actually allowed to increase emissions under the treaty. After looking into the origins, history, implementation, and final costs of Kyoto, Singer and Avery determined that it would not be an effective measure to reduce

43


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climate change. For example, if it were fully implemented and fully effective, it would reduce global average temperatures by less than 1 C over the next 100 years. Recognizing that fact, they suggest that Kyoto would require expenditures that far outweigh its potential benefits. They also note that the proponents of Kyoto predict serious costs if the protocol is not implemented. Singer and Avery contend, however, that those costs are predicated on worst-case scenario warming predictions and that they ignore the potential economic, social, and environmental benefits of warming. Additionally, Singer and Avery note only two Kyoto signatories – Britain and Sweden – expect to meet their reduction targets. (Recent news suggests, however, that Great Britain’s reporting scheme has left off reporting much of the emissions from their transportation sector.) They also note that other economic studies – such as the Copenhagen Consensus – have rated other environmental and social concerns – like AIDS, malaria, malnutrition, and the provision of clean water – as far more pressing concerns. Since renewable energy has been presented as one key means of weaning our

society from fossil fuels, Singer and Avery close out their book by taking a frank and informative look at the costs and ability of renewable energy sources to cleanly and economically meet the world’s burgeoning demand for abundant electricity. Many people sincerely believe that renewable energy sources and conservation measures will allow the developed and developing world to enjoy abundant and affordable energy now and well into the future. The reality is, however, in their current state, most renewables cannot provide baseload energy and they cannot compete economically without substantial subsidies and tax credits. The truth of the matter is we will need a diverse supply of energy from all our energy sources – renewables, fossil fuels, nuclear, hydroelectric, oil, and gas – to meet our growing demand; Avery and Singer recognize that fact. In closing, it is worthwhile to consider that some have dismissed this book out-ofhand because of an alleged tie to the fossil fuels industry. Those criticisms, however, assume what they are trying to prove – that a strict allegiance to the cause of fighting climate change is inherently correct and any

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attempts to question that allegiance must be immediately suppressed. Clearly this is an irrational view. As Singer and Avery demonstrate, there are ample, economic, rational, and scientific reasons to question proposed climate change policies. Additionally, one can reasonably assume that if it is irrational to immediately suppress dissent, then there is nothing wrong with the fossil fuel industry defending its hard-won rights to provide society with a necessary and very much in demand product. Additionally, the attempts to label skeptical views as biased because of a tie to industry are irrational, as government- or NGO-funded research is no less likely to hold biases. The battle for budget dollars and potential for personal prestige associated with that research are no less a temptation than grants given by industry. In fact, they are potentially even more of a temptation as one realizes that if the issue of AGW is ever solved, then the need for climate change research vanishes. Simply dismissing this book on a whim or through the application of guilt-by-association fallacies is a profoundly weak argument. Given the fact that Singer and Avery have used as the book’s foundation, the same science and research that is so often presented as proof of the broad consensus on AGW, there is no reasonable justification for simply dismissing the book out of hand. Singer and Avery have produced a solid, well-researched and voluminously footnoted review of the science, policy, and concerns related to global warming. Those with a reasonable mind will take the time to honestly consider what they have written.  u Jason Hayes is the communications director for the American Coal Council (www.clean-coal.info).

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Future Energy:

How the New Oil Industry Will Change People, Politics, and Portfolios Author Bill Paul Publisher: John Wiley & Sons, Inc. (2007) Language: English ISBN: 978-0-470-0642-0 Review by Jason Hayes, M.E.Des., Communications Director, American Coal Council

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nergy supplies are tightening and prices are skyrocketing. Civil unrest, conflict, and acts of terror – often related to the free flow of energy – are spreading around the world. Environmental concerns and our ability to produce and use energy efficiently only serve to compound the challenges. As greening markets and environmental regulation make energy development, generation, and transmission more expensive and more difficult, pressures increase. Sitting atop of it all are the fears of climate change; rising sea levels, famine, drought, pestilence, and the list goes on. If you have turned on the news or opened a newspaper in the past several years, that opening paragraph should outline much of what you will have read or heard. If one concentrated solely on the media headlines and sound bites, they might be tempted to throw up their hands, move to the hinterlands, and become a hermit. There are, however, a few remaining optimists out there. Despite the challenges our society faces in providing affordable, abundant and clean energy sources to meet our meteoric growth in demand, there is still hope. Bill Paul’s Future Energy provides one starting point in the search for new, abundant and affordable energy sources (or information about those sources). To be honest, Future Energy was a bit of a surprise to me. When I first picked it up, I expected to find another “how to” book. I expected policy and politics and instructions detailing Paul’s thoughts on “the best way” to obtain energy for our future. Again, I was surprised because while Paul does provide many ideas and suggestions on how things could be done, he clearly did not write Future Energy as an instruction manual. american coal council

Instead, it reads as more of a “who’s who” in the buildup of the next generation of energy producers. Paul runs through a detailed list of companies that will make up the “New Oil Industry.” In fact, Appendix A of the book could be described as basic reading for anyone seriously interested in investing in future energy development. True to his journalistic roots, Paul quite thoroughly and fairly investigates most – if not all – of the emerging energy trends and provides names and Web sites for any company he deems worthy of second or third looks by investors. He gives fair reviews of these energy sources, considering their costs and likely ability to play a role in energy production. Then he moves through a mix of established and emerging players, reviews 15 categories of energy technologies, and ranks 100 companies on their ability to play a significant role our future energy. The most interesting portion of Future Energy was Paul’s assertion that the actual 2006 price of gasoline was over $11 a gallon. I won’t steal Paul’s thunder by revealing everything that went into his cost calculations. He argues, however, that the defense-related expenses required to ensure the free-flow of oil, along with lost economic activity incurred by sending money out of the United States to the banks and governments of other oil-producing companies, represents a significant hidden cost to all American energy consumers. Unfortunately, Paul does not recount how many of those banks and oil-producing companies are sending a lot of that money back to the United States in the form of wages, capital, and investments. That returning investment does serve to limit 47


some of these financial impacts. Paul does have, however, a good point that developing domestic resources will do more to benefit the economy overall. Coming from a coal perspective and knowing that coal-toliquids (CTL) is competitive with oil at around $45 to $50 per barrel – which leads to $2 to $3 gas at the pumps – $11 gas makes the choice to develop and use our massive domestic coal resources for energy production (such as CTL) a no-brainer. Many in the environmental movement or the more socially conscious (so-called) will criticize Future Energy and Paul for some of his bedrock assumptions. For example, he takes as a basic fact that economic growth is a good – or necessary – thing and that we will need to continue supplying abundant and affordable energy

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to meet American and worldwide energy demand. Additionally, his choice of the Chevrolet Corvette as embodying the “spirit” that should motivate the new oil industry should prove especially galling to some. Those criticisms should, however, be balanced against the reality that the developed world is doing more with less and doing so much more efficiently than it ever has. For example, our air is cleaner than it has been in decades and we have more forested area than when Columbus first landed. We enjoy unparalleled abundance and are learning to have that abundance while still maintaining healthy environmental conditions. At the same time, suggestions by some environmentalists – such as Gar Smith of the Earth Island Institute who once argued that there’s “a lot of quality to be had in poverty,” and that allowing developing countries to use electricity would “destroy” their cultures – will be rejected outright by those currently enduring that poverty. Therefore, Paul’s prediction that demand for cheap, abundant, and clean energy will continue to grow in both the developed and developing world, is worth paying attention to. Future Energy is a worthwhile foray into the notion that we can move beyond our traditional use of oil and gas. We can find new ways and new technologies to make new fuels and energy sources. This book doesn’t provide us with all the answers, but as I noted above, it wasn’t meant to. It offers up some helpful hints and thoughts on what our future energy sources could look like and then provides detailed lists of emerging technologies and the names of companies that are likely to be leading the way to make those technologies an every day reality.  u

american 18/11/2003, coal 11:04:54council AM


E xcellence AWARDS

2007 The ACC Excellence Awards recognize North American companies, foundations, associations and individuals across the coal industry that have played a significant role in improving their local communities, who have benefited energy-based education programs and who have excelled in their efforts to develop and transmit public information on coal and the energy industry.

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he American Coal Council was very pleased to recognize the hard work and dedication of five companies at the Spring Coal Forum, held March 10 to 12, 2008 in Miami, Fla., at the Doral Golf Resort and Spa. ACC Excellence Awards were presented to winners in the following categories:

Excellence in the Advancement of Energy Education

Excellence in Public Service or Community Development

Award Winner: Lignite Energy Council A North Dakota-based industry association formed to promote the use and understanding of the region’s lignite industry, the Lignite Energy Council has worked in its area to ensure that educators are well prepared to teach their students about how lignite is mined and used in energy production. Our judging committee made a special point of noting how well organized and thorough Council staff was when preparing the teacher’s workshops, field trips, and supporting materials. By reaching out to over 2,200 local teachers, the Council’s education programs have potentially influenced the education of over 60,000 students.

www.williamson.edu Award Winner: Williamson Free School of Mechanical Trades “In this country, every able-bodied, healthy, young man who has learned a good mechanical trade, and is truthful, honest, frugal, temperate, and industrious, is certain to succeed in life, and to become a useful and respected member of society.” ~ Isaiah Williamson, School Founder Williamson students are trained in the operation, maintenance, and testing of boilers, turbines, … electric generators, switch gear, … as well as the theory of nuclear, fossil fuel, hydroelectric and other systems of power generation. Given the fact that the utility industry currently needs many new, well-trained employees, Williamson is offering a timely and important service to the country. Williamson distinguishes itself from other schools by ensuring that each of its students attends the school on a full scholarship that covers tuition, room, board, and textbooks. Furthermore, they offer this amazing opportunity to their students without accepting government funding.

american coal council

www.lignite.com

www.seminole-electric.com Honorable Mention: Seminole Electric Cooperative The Seminole Electric Company, Inc. (SECI) is a Floridabased electricity generation and transmission cooperative that has committed itself to providing bias-balanced information and opportunities to Florida’s educators. SECI employees offer an eighth-grade energy education program to science teachers in the Putnam County area. This program is based on the state’s science curriculum and aims to help educators and students meet state educational requirements, as well as communicate to the public who SECI is, how they work to provide the state with affordable and abundant energy, and what efforts they are making to ensure their plants operate in an efficient and clean manner. In the four years that SECI has offered their program, SECI has reached 3,400 students with positive messages on electric cooperatives and clean coal power options. 49


Excellence in the Development of Public Information: Print, Electronic, or Broadcast Media www.mnpower.com

www.fossil.energy.gov Award Winner: Department of Energy – Office of Fossil Energy The Department of Energy (DOE) Office of Fossil Energy (FE) is a very well known entity in the energy industry, providing abundant information, statistics, and educational materials on energy. As their awards application submission noted, the DOE has traditionally done a thorough job of reaching the energy industry with their information and publications. They noticed, however, there was a lack of good information being shared with the general public, i.e., “the average taxpayer, the retiree, the homeowner, the student, and the numerous groups whose collective judgement becomes public opinion,� on what it takes to power the country. Therefore, FE established an in-depth educational program to help educate the general public on the benefits of keeping coal in America’s energy mix and how their tax investments have been used to develop advanced technologies that benefit their everyday lives. Fossil Energy now ensures that the broader public receives information through the FE Web site, news alerts, a traveling exhibit, as well as educational and information packets on FEs clean-coal program.

For more information on the ACC Excellence Awards program, you can visit the Excellence Awards section on the ACC Web site (www.clean-coal.info), or please contact: Jason Hayes, communications director, The American Coal Council, Phone: 202-756-4540, Mobile: 602-769-3872, E-mail: jason@clean-coal.info

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Honorable Mention: Minnesota Power Minnesota Power is a Minnesota-based utility that provides retail electricity service to over 141,000 customers and 16 municipalities with its coal-fueled and hydroelectric generating facilities. In 2007, Minnesota Power began an emissions reduction program at its coal-fueled generation plants that would see NOx, SOx, and mercury emissions reduced by up to 90 percent. As a means of ensuring the public was aware of the work that was being done, Minnesota Power created the Tomorrow in Motion Today campaign. Through print, radio, and television ads, as well as supplementary online information, Minnesota Power ensured that their customers and the broader public had access to ample information on the emissions equipment upgrades and the utility’s commitment to ensuring an abundant supply of affordable and clean electricity. The ACC is the pre-eminent voice of the American coal industry. As part of that role, we promote public awareness of organizations that have been unusually effective in educating the public on the impact and importance of the coal industry. Whether through direct public service, the creation of educational programs, or the development of public information, the ACC Excellence Awards recognize the hard work and dedication of those who are improving public knowledge and perception of the coal industry. We offer our congratulations to all of our 2007 Award winners. The ACC also would like to offer special thanks to our panel of judges: Carl Michael Smith, Ray Dykes, and Keith Drohan. We would also like to thank everyone else who took the time to submit an application; we recognize the hard work and dedication that you put into your jobs and your communities. We encourage our readers to watch the ACC Web site, as we will be releasing information on the 2008 Excellence Awards in the upcoming quarter.  u

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The Path to Improved Mine Safety By Kraig R. Naasz, National Mining Association

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he coal industry, like virtually all basic industries operating in the United States, confronts no shortage of serious issues in the coming years. But no issue is more important than mine safety. A series of highly publicized mine tragedies in underground coal mines in the past couple of years has led the industry to conduct a full-scale re-examination of its mine safety procedures, its safety training and the technology needed to make mines safer. These same incidents also have renewed congressional interest in mine safety.

Following fatalities in underground coal mines in West Virginia and Kentucky, Congress held comprehensive hearings and, with overwhelming bipartisan support, passed the Mine Improvement and New Emergency Response (MINER) Act of 2006 in a matter of months. The U.S. coal industry actively supported passage of this wide-ranging law to improve safety conditions in underground coal mines. The MINER Act, signed by the president that June, calls for a broad range of practices and procedures – better and more frequent safety training, tighter enforce-

ment by federal regulators, additional rescue crews, more breathable air supplies stored throughout the mines – together with deadlines for the installation of stateof-the-art, two-way communications gear that will allow wireless signals to penetrate earth and rock. Most of the requirements in the MINER Act stem from a set of safety principles developed by the industry’s leadership and safety professionals. The industry also formed the Mine Safety Technology and Training Commission, an independent group of safety experts from

U.S. Coal Mining Record of Reduction Fatal Injuries, 1990-2007 80 70 60

66 61

50% Decrease 55

50

47

45

47

47 39

40

35 30

30

29

38

42

27

30

33 28 23

20 10 0

1990 1991 1992 1993

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Source: Mine Safety & Health Administration (MSHA)

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the academic, public and private sectors, headed by Dr. Larry Grayson, then chairman of the Mining Engineering School at the University of Missouri-Rolla. Coal industry leaders felt strongly that outside experts, studying current and prospective mine safety practices, would be ideally suited to make credible and far-reaching recommendations for improving safety conditions. The commission’s report, which was publicly released in December 2006, resulted in measures now being implemented, that focus on actively managing the risks identified at each mine. Under NMA’s leadership, the industry also is carrying out ongoing studies with federal agencies such as the National Institute for Occupational Safety and Health (NIOSH) and the Mine Safety and Health Administration (MSHA) to implement aspects of the MINER Act. The cumulative impact on the industry has obviously been considerable in both time and financial resources. Compliance with the act to date has affected every underground coal mine in the nation and has led to more than $250 million in safety investments, with further expenditures still to

come in the years ahead as new safety technology becomes commercially available. The coal industry views these actions as part of its commitment to return to the strong mine safety record the industry achieved before the tragedies of the last two years. In 2005, the U.S. coal industry recorded its safest year in history. It was the culmination of a year-over-year trend for much of the previous decade of steadily declining fatalities and serious accidents. The urgency to regain this momentum and return the industry to the path toward zero fatalities was the overwhelming motivation behind NMA’s support for the MINER Act of 2006. That same urgency to improve mine safety is what underlies NMA’s opposition to the S-MINER Act sponsored by Rep. George Miller (D-Calif.). His bill (H.R. 2768), which narrowly passed the House by a vote of 214-199 in mid-January, consists of several new mandates that will only detract the industry from implementing the comprehensive provisions of the MINER Act – now barely 18 months old. In light of the MINER Act’s ongoing implementation and the improvements

made throughout the nation’s underground mines since 2006, many mine safety academics also have concluded that Miller’s bill would be a hindrance, not a help. In a letter to Rep. Miller, 12 professors of mining engineering urged the congressman to defer any new legislation until the industry had sufficient experience under the new law to assess the need for further requirements. “Simply put,” says Prof. Rick Honaker, chairman of the University of Kentucky department of mining engineering, “additional legislation now serves no useful purpose.” The President’s advisers echoed these sentiments in issuing a veto threat on H.R. 2768. The industry also is gratified by the support of the 199 House members who voted against Rep. Miller’s bill. We hope the Senate will heed these words of caution. Meanwhile, the coal industry continues to assess the impact on operations of various rules recently finalized by MSHA for implementation of the MINER Act. In several notable cases, these rules certainly will raise operating costs beyond levels pro-

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“Simply put, additional legislation now serves no useful purpose”

AmerenEnergy Fuels and Services Company (AFS) provides a full range of fuel-related and business development services to the Ameren group of companies. AFS also provides assistance to some unaffiliated business, assisting with specific fuels, ash management and emission related issues. AFS procures over 40 million tons of coal from the Powder River and Illinois Basins for use in the Ameren generation fleet. In addition to procurement, AFS provides transportation services related to negotiation and administration of rail, barge and truck contracts, as well as the management of over 5000 system railcars. Management and marketing of coal river terminals on the Mississippi River is another area of expertise for AFS. AFS has the ability to provide blending and rail to water trans-loading services for both in-house and third party users.

– Prof. Rick Honaker,

Combustion by-product services for beneficial use such as flowable fill projects as well as ash disposal options are additional services provided by the AFS team.

chairman of the University

AFS provides all procurement of natural gas on both the wholesale and retail level to over 925,000 customers in the Ameren UE, Ameren Energy Generating Company, Ameren CILCO and AmerenIP territories.

of Kentucky department jected last year. For example, the agency has issued final rules that restrict the circumstances under which operators can request conferences with MSHA district managers to discuss citations. Relegating this option now to only the most serious violations will, in NMA’s view, lead to more protracted and expensive litigation. Similarly, MSHA’s rule requiring storage of breathable air devices in only hardened sites in underground mines, ignores the practical utility and safety benefits of allowing devices to be stored in reinforced cross-cuts or in steel boxes accessible from each escapeway. Finally, MSHA’s rule setting requirements for rescue teams, is needlessly inflexible and overly prescriptive. Despite the industry’s reservations with these and similar regulations, we hope these rules do not signify the onset of a more antagonistic relationship with federal regulators. Such an environment would not be conducive to achieving the level of safety we all believe will soon be within our grasp with better technology and training. NMA’s leadership is determined to set the safety bar high. Coal mining will not be a sustainable industry without steadily improving mine safety, and nowhere is that better understood than in the industry itself.  u Kraig Naasz is president and CEO of the National Mining Association (www.nma.org). american coal council

Market research is an additional function of AFS, providing senior management as well as plant operations with the necessary information required to keep on top of the ever-changing fuel and transportation markets. The Business Development group of AFS is also responsible for activities related to renewable energy resources and the development of “green generation projects.” Visit our web-site at www.ameren.com.

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Energy Demand vs. Environmental Responsibility: The promise of cleaner coal By Rolando Sanz-Guerrero, CoalTek, Inc.

L

ike the rest of the world, the United States is facing a serious energy dilemma. Fuel sources like coal are widely available and relatively inexpensive, but have been attacked as undesirable from an environmental perspective. Today, nearly 50 percent of the electricity generated in the U.S. comes from coal-fueled generators. Growing energy demand impacts the environment The global energy market is enormous and growing. Coal alone represents a five-billion-tonper-year annual market. The U.S. Energy Information Administration (EIA) predicts that by the year 2030, world demand for coal will nearly double from its current levels to 10.6 billion tons annually. Two major concerns emerge as a result of increased demand for energy worldwide. First, where will this energy come from? Do we have either enough reserves in fossil fuel-based sources or

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sufficient new sources to meet this growing demand? And second, how do we deal with the environmental impact of our fuel choices? There are a number of ways to meet the requirement for cleaner fuels, including “green” technologies. None of these clean energy sources – even renewable sources like wind and solar power – can easily be dispatched on demand. And, other “dis-

american coal council

patchable” technologies such as nuclear power are not readily enough available to meet the current base-load energy demand, much less the massive increase that is anticipated. Addressing the demand responsibly Initiatives like the National Energy Policy and Clean Coal Initiative show

that it’s imperative for the industry to commercialize processes now that will meet our steadily growing energy appetite. Currently, coal is the only domestic energy resource with sufficient reserves to meet the 127-quadrillion-Btu demand the EIA is predicting by the year 2030. The EIA estimates U.S. coal reserves at 12,361 quadrillion Btus, enough to sustain demand for approximately the next 500 to 600

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years. Since most “clean” energy sources don’t meet the tests of affordability, availability and on-demand “dispatchability,” they simply cannot meet the needs of the infrastructure, now or moving forward. Clean coal is the only technology capable of delivering on the promise of energy security and independence while remaining environmentally responsible. The “clean” energy challenge Creating clean coal, however, has not been easy. The successful development and commercialization of clean coal solutions has faced a number of technological hurdles. The challenge has been to deliver a MACT-compliant1, sustainable clean coal solution with the physical characteristics, efficiency, and yield properties of regular coal – a product that allows coal-fueled power generators to operate existing facilities without expensive refitting. In fact, coal-consuming power plants in the United States face difficult choices to keep emissions of sulfur dioxide (SO2) within EPA limits. Until recently, these choices have been limited primarily to installing expensive “scrubbers” to capture the SO2 or resorting to another difficult and expensive option: searching for lowsulfur, high-heat coal. After years of discussion and promise of clean coal products, careful research and advancements in technology have finally begun to deliver solutions capable 1

of balancing environmental responsibility with energy demand. State and federal government initiatives are underway to research and help bring to market cleaner, coal-based energy solutions. Several companies are now beginning to market clean-coal solutions in the United States and abroad.

high Btu density. Moisture, ash, all three forms of sulfur, chlorine, and mercury can be potentially reduced. The CoalTek process is environmentally compliant. All byproducts are captured, filtered and separated, meeting the same EPA standards as agricultural water for disposal into holding ponds.

Commercializing clean coal solutions To move beyond a proof of concept or pilot phase of clean coal production to full commercialization, there are a number of criteria that must be satisfied: • Demonstrated ability to consistently control Btu target levels. • Consistent product quality. • Ability to process diverse input coals. • Proven cost economics. • Proven commercial scale.

Aligning energy demand and environmental responsibility Since other renewable technologies that meet the test of environmental friendliness can’t meet the availability and affordability requirements of the infrastructure, clean coal is really the only viable alternative today. Thanks to innovative technologies like CoalTek’s, the problem of producing affordable, MACT-compliant high-yield clean coal has been solved in a way that allows power generators to continue operating their facilities without expensive equipment changes. And, even more critical, the ability of these new technologies to overcome the remaining obstacle – consistently maintaining desired properties end-to-end to enable full commercialization – has finally made the alignment of energy and environmental objectives possible.  u

CoalTek, Inc. is an example of a company that already offers a fully commercialized clean coal solution. The company’s patented process was developed, tested and proven over eight years and employs electromagnetic energy to reduce raw coal’s moisture content and allow it to burn more efficiently and cleanly. This non-thermal technology enables coal-fueled power generators to optimize burn efficiency and increase overall yields, and at the same time creates a MACT-compliant coal at a relatively

Rolando Sanz-Guerrero is vice president of Marketing and Sales at CoalTek, Inc. (www. coaltek.com).

MACT refers to “maximum achievable control technology.”

Index to Advertisers AIR-CURE Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Alliance Coal, LLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Alstom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Ameren Energy Fuels & Services. . . . . . . . . . . . . . . . . . . . . . . 55 Barlow Jonker. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 BNSF Railway. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Borton LC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Cargill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Chemetron Fire Systems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Chevron Mining Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 COAL-GEN Conference & Exhibition. . . . . . . . . . . . . . . . . . . . . 40 Coal Marketing Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Consol Energy Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 CSX Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 DTE Coal Services. . . . . . . . . . . . . . . . . . . . . . Inside Front Cover E S & S Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Energy Publishing, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Ernst & Young. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Fuel Tech, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

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Hardsteel, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Headwaters Resources . . . . . . . . . . . . . . . . . Outside Back Cover Helm Financial Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Hill & Associates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 ICAP United. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Ingram Marine Group. . . . . . . . . . . . . . . . . . . . Inside Back Cover Interlake Steamship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Jennmar Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 KCBX Terminals Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Kiewit Mining Group Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Marshall Miller and Associates. . . . . . . . . . . . . . . . . . . . . . 50, 21 Marston . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Martin Engineering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Material Control, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Microbeam Technologies Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . 54 Midwest Generation EME, LLC. . . . . . . . . . . . . . . . . . . . . . . . . 48 Nex Gen Coal Services Ltd.. . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Norwest Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Peabody Energy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

PICOR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Pincock, Allen & Holt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Platts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 PricewaterhouseCoopers, LLP. . . . . . . . . . . . . . . . . . . . . . . . . 45 Rio Tinto Energy America. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Roberts & Schaefer Company . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Savage Services Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . 54 SCH Terminal Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Storm Technologies, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Strata Mine Services Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 TEMA Systems, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16, 30 The David J. Joseph Company -Rail Equipment Group . . . . . . . 46 The Raring Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Thermo Scientific. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Trianco Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 TrinityRail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Wiley Consulting, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Wood Mackenzie Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

american coal council


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industry’s most diverse portfolio of services and technologies that make coal cleaner and more valuable for our nation’s dynamic energy future.

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Pre-combustion Clean Coal Technologies for Power Generation 8 Deploying both wet and dry coal cleaning technologies to make productive use of waste coal 8 Commercializing low rank fuel enhancement technology (coal drying) 8 Applying nanocatalyst technology for creation of emissions reducing coal treatments 8 Ethanol production utilizing waste heat from coal fueled power stations Coal Conversion for Ultra Clean Transportation Fuels 8 Only technology provider with footprint in all coal conversion methods: – Direct Coal Liquefaction – Indirect (Fischer Tropsch) Coal Liquefaction – Heavy Oil / Coal Co-processing 8 Leading developer of America’s first coal-to-liquids projects Post-Combustion Resources Management 8 Largest manager and marketer of coal combustion products: – Marketing nearly 7 million tons of coal fly ash annually – Expertise in FGD systems installation and operation – Comprehensive utility and industrial services – Technologies for controlling ammonia and carbon in ash 8 Leading manufacturer of building products containing coal ash: – Regional market leader in concrete blocks – National market leader in architectural stone veneer and siding accessories

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American Coal Issue 1 2008  
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